China: Stocks inch up as property shares rise on policy hopes

[SHANGHAI] China stocks edged up on Wednesday, with property shares surging on policy support hopes as well as signs that insurers are scrambling for stakes in major real estate firms.

The market was also aided by stabilizing resource shares, bolstered by evidence that Beijing is accelerating consolidation among metal producers.

The blue-chip CSI300 index rose 0.4 per cent, to 3,635.94, while the Shanghai Composite Index gained 0.1 per cent, to 3,472.44 points.

Investors seemed to ignore Wednesday data showing China's consumer inflation picked up slightly in November, even as factories are still plagued by producer price deflation.

Real estate was again in the spotlight. An index tracking the sector shot up 5.4 percent on hopes that Beijing will provide more support for the industry. A media report said some lower-tier cities are subsidising farmers to buy houses.

Investor enthusiasm for the sector was rekindled when China Vanke Co, the biggest listed developer, said on Wednesday that Anbang Insurance Group had been acquiring its shares, and currently owned 5 per cent. It is the second insurer collecting Vanke shares in the secondary market.

Vanke shares surged 10 per cent, the upward limit.

Resource-related shares were firm after China Minmetals Corp's acquisition of China Metallurgical Group Corp fuelled expectations of more consolidation in the mining sector to tackle industry overcapacity.

REUTERS