China: Stocks climb on housing policy support measures

Mainland China share market finished session modestly higher on Thursday, 16 May 2024, led by property and financial shares, thanks to supportive measures launched by local Chinese governments to shore up the property market. Also helping the stock market was a stronger yuan.

In the latest effort to stem the downturn and reduce inventories, the city of Hangzhou said that it would buy existing homes and rent them out as affordable housing and Hefei would give homebuyers subsidies equivalent to 2% of the values of purchases homes.

At close of trade, the benchmark Shanghai Composite index was up 0.08%, or 2.71 points, to 3,273.06. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.29%, or 5.13 points, to 1,764.71. The blue-chip CSI300 index inclined 0.39%, or 14.30 points, to 3,640.36.

Shares of property developer advanced after reports that China is considering a proposal to have local governments across the country buy millions of unsold homes,

CURRENCY NEWS: China's yuan edged up against the dollar on Thursday, as firmer mid-point rate fixing by the central bank and reports that China is considering a plan for local governments nationwide to buy millions of unsold homes. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.102 per U.S. dollar, 29 pips firmer than the previous fix of 7.1049. The onshore yuan opened at 7.2099 per dollar and was changing hands at 7.2156 at midday, 20 pips firmer than the previous late session close and 1.60% away from the midpoint.

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