BEIJING: China stocks have climbed, led by property and resources shares, amid signs that insurers are scrambling for stakes in real estate majors and Beijing is accelerating consolidation among metal producers.
Hong Kong stocks sagged, however, pulled down by sluggish global markets and investor caution ahead of an expected US rate hike next week.
China’s blue-chip CSI300 index rose 0.8 per cent, to 3,652.63 points by lunch break, while the Shanghai Composite Index gained 0.7 per cent, to 3,492.58 points.
Investors apparently ignored Wednesday’s data showing China’s consumer inflation picked up slightly in November, even as factories were plagued by persistent producer price deflation.
“The macro-economic figures had a small net impact on the market,” said Gerry Alfonso, director at Shenwan Hongyuan Securities.
Real estate was again in the spotlight.
An index tracking the sector shot up 3.8 per cent on the hope that Beijing will provide more supports for the industry.
Investor enthusiasm in the sector was rekindled when China Vanke Co, the biggest listed developer, said on Wednesday Anbang Insurance Group had been acquiring its shares, and currently owned five per cent of the company.
That disclosure, which followed two days after Vanke said another insurer, Foresea Life Insurance Co Ltd, and a partner had bought enough shares to become its biggest shareholder. That disclosure fuelled speculation of a bidding war for Vanke shares, pushing the price up 6.3 per cent.
