China Indexes Trim Weekly Losses After New Home Sales Rebound

Li Chen
25 Oct, 2024
Hong Kong

Stock market indexes in China and Hong Kong advanced and trimmed weekly losses after property sales rebounded. 

The Hang Seng index gained 0.8% and the mainland-focused CSI 300 index advanced 0.9% as investors bid up stocks related to the property sector. 

For the week, the Hang Seng index and the CSI 300 index increased 0.4% and 0.3%, respectively. 

New home bookings in the current week increased 22% from the previous week in the 30 largest cities across mainland China, according to financial data provider Wind. 

Home sales increased slowed from a 58% surge in the week before, but new home bookings in the top-tier cities rose 27% in the latest week. 

The latest home sales data over the last three weeks confirms the rising interest among home buyers following a list of measures announced by the People's Bank of China and local government. 

Most cities across China have relaxed home buying restrictions, lowered down payment requirements, and curbed local residency rules for first-time home buyers. 

Investors are still on edge and worry that the announced measures may not go far enough to arrest price declines in second- and third-tier cities as property developers lack funds to complete unfinished projects after years of delays and gross mismanagement. 

Moreover, investors lack enthusiasm about quarterly results from leading companies as the economy faces deflationary trends and weak consumer confidence. 

 

China Stock Movers 

On stock exchanges, the Hang Seng index increased 0.8% to 20,663.91 and the CSI index advanced 0.9% to 3,963.71. 

Li Auto increased 5.8% to HK $111.80, Geely rose 7.9% to HK $15.0, and BYD gained 3.2% to HK $294.80. 

Xinyi Solar Holdings soared 20.3% to HK $4.32, and the stock advanced on speculation that China will take steps to curb overcapacity in the industry and the U.S. may trim tariffs on solar products. 

Alnera Aluminium jumped nearly fourfold from its initial public offering price of 27.70 yuan to 137.98 yuan in Shenzhen trading. 

The Chongqing-based company sold 24 million shares in its initial public offering and raised 664 million yuan.