China Market rises 1.14%

The Mainland China equity market closed session higher on Wednesday, 19 September 2018, with investor sentiment buoyed Beijing pledging to step up investment in key areas of the economy to offset the adverse impact from the trade war and refraining from using heavy-handed measures to retaliate against the US. At closing bell, the benchmark Shanghai Composite Index gained 1.14%, or 30.90 points, to 2,730.85, meanwhile the Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 1.36%, or 19.07 points, to 1,423.22. The blue-chip CSI300 index added 1.32%, or 43.06 points, to 3,312.48.

The administration of U.S. President Donald Trump announced Monday that it will impose a 10 percent tariff on $200 billion worth of Chinese imports from Sept. 24 and increase the rate to 25 percent, effective on Jan. 1 next year. In response, China said it will hit back with retaliatory duties of up to 10 percent on $60 billion worth of U.S. products. A risk-on mood grew among investors as the tariffs were smaller than initially feared.

Shares of property developers climbed on preferential tax policies. As per reports, the Chinese government was working on detailed plans that would allow mortgages and rents to be deducted from individuals' taxable income. The rules are likely to take effect in January 2019. China Vanke jumped 5.1 per cent to 24.17 yuan. Poly Real Estate Group added 4.7 per cent to 12.71 yuan and Future Land Holdings climbed 7.3 per cent to 27.12 yuan.

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