Mainland stocks firm after strong loan data

Source:Reuters-Global Times Published: 2017/9/18 17:18:40

Chinese mainland stocks rose on Monday, bolstered by stronger-than-expected loan data that added to views economic growth is holding up well and by the loosening of restrictions on stock index futures trading.

China's financial futures exchange said on Friday it was cutting margin requirements and transaction fees for certain stock index futures contracts.

The blue-chip CSI300 index  rose 0.31 percent to 3,843.14 points, while the Shanghai Composite Index gained 0.28 percent to 3,362.86 points.

August loan data released after the market close on Friday showed Chinese banks extended more credit than expected in August, buoyed by demand from home buyers and companies.

Home price data on Monday was also well received. While home price rises continued to moderate in general after a series of government cooling measures - suggesting authorities have been successful in deflating a property bubble - there were no signs of a severe correction which would damage the economy.

"People are finding that the property sector is not as bad as they expected, which is why major property firms have become investors' darlings," asset manager Windsor Capital said in a report.

But an index tracking real estate firms eased as investors took profits after a recent strong rally.

Consumers led the gains, as market participants chased Chinese liquor makers, expecting the week-long Mid-Autumn Festival and National Day holiday starting October 1 to boost demand for liquor.

Posted in: MARKETS

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