BEIJING: China stocks edged up on Thursday, supported by property and resources firms as investors drew confidence from a slew of analysts’ forecasts that generally painted a rosy outlook for the equity market next year.
Hong Kong stocks rebounded, along with European and other Asian markets, as anxiety from Turkey’s downing of a Russian fighter jet abated.
The CSI300 index rose 0.1 percent, to 3,785.58 points at the end of the morning session, while the Shanghai Composite Index gained 0.3 percent, to 3,657.07 points.
Reports from brokerages including Guotai Junan Securities and Shenwan Hongyuan Securities expressed optimism that shares will trend higher in 2016.
Shenwan Hongyuan predicted that SSEC will rise to around 4,500 points next year, up 23 percent from the current level, as ample liquidity chase a small pool of strong assets.
Analysts recommend investors to buy stocks of fast-growing industries such as new energy, education and avant-tech, and expect the overall economic picture to improve next year, potentially triggering a rebound in cyclical sectors.
Real estate stocks were firmer on decent sales forecasts while home appliance stocks also advanced on expectations that air-condition makers such as Gree Electric Appliance would benefit from a freezing winter.
Resources shares rebounded sharply, inspired by a surge in zinc prices, after China’s major zinc smelters said they would slash output by 500,000 tonnes, or nearly a fifth, next year.
In Hong Kong, the Hang Seng index added 1.0 percent, to 22,719.63 points, while the Hong Kong China Enterprises Index gained 0.7 percent, to 10,199.14.
