SHANGHAI: China stocks were headed for its fifth straight days of gains on Friday – their longest winning streak in two months – as fresh reform measures helped sustain sentiment in thin trade ahead of the Lunar New Year holiday.
Hong Kong stocks also rose, taking their cue from buoyant global markets in the wake of a ceasefire accord in Ukraine and Sweden’s surprise move to cut its main rate into negative territory.
The CSI300 Index rose 1.5 percent in morning trading, while the Shanghai Composite Index was up 1.6 percent. Hong shares also gained, with the Hang Seng Index up 0.9 percent.
The People’s Bank of China said on Thursday that firms and financial institutions in Shanghai’s Free Trade Zone (FTZ) would be allowed to conduct overseas financing without government approvals, and the ceiling of their leverage ratios for these activities would also be raised.
The move is seen as another step towards financial liberalization, and would reduce financing costs of companies in the FTZ. The news boosted shares of Shanghai-based financial firms such as AJ Corp, which surged to the 10 percent limit.
Also, investor hopes of more consolidation in listed state-owned companies were fanned after the China Securities Journal reported that reform proposals by agricultural giant COFCO and investment holding firm State Development & Investment Corp (SDIC) received regulatory approval.
