Hong Kong stocks rise as real estate stocks jump on Chinese policy easing bets


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Hong Kong stocks rallied on Thursday despite declines in most Asian markets as Chinese real estate stocks rebounded in hopes that Beijing would ease policies to help the struggling sector.

** The Hang Seng Index rose 1% to 25,247.99, while the China Enterprises Index gained 1.5% to 9,048.39.

** In contrast, the broader MSCI index of Asia Pacific equities outside of Japan fell 0.3% after data showed that US consumer prices rose at the fastest pace since 1990 last month. .

** Sentiment in Hong Kong was supported by strong rebounds in real estate stocks amid a series of positive signs fueling hopes for a policy easing.

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** An index that tracks mainland developers listed in Hong Kong grew 5.6%. Sunac grew 8.4% while Logan Group grew 9.3%.

** A group of experts from the Chinese state council met with a local real estate association and financial institutions in Guangzhou, according to Chinese media, days after the agency held a similar meeting with developers and banks in Shenzhen.

** On Wednesday, the Securities Times reported that some real estate companies revealed plans to issue debt in the interbank market in a meeting with market regulators.

** Data showing a rise in new mortgage lending in October and news that China Evergrande Group bondholders received coupon payments from the indebted developer also helped sentiment.

** Bank stocks rose on fears that further developer defaults would erode banks’ balance sheets.

** Biotechnology and telecommunications were among the few sectors in decline on Thursday. (Reported by the Shanghai Newsroom; edited by Subhranshu Sahu)


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