China, HK shares rise as real estate stocks jump on central bank promise

[SHANGHAI] Chinese shares rose on Tuesday, led by real estate stocks, after the central bank pledged to protect consumers exposed to the housing market, while Hong Kong gained as property and tech shares rebound.

The CSI300 index rose 0.4 per cent to 4,895.83 at the end of the morning session, while the Shanghai Composite Index gained 0.5 per cent to 3,601.66.

The Hang Seng index added 1.5 per cent to 24,561.75. The Hong Kong China Enterprises Index gained 2 per cent, to 8,755.32.

China's CSI 300 Real Estate Index surged 6.8 per cent, its biggest intraday jump in seven months, as China's central bank vowed to protect consumers exposed to the housing market on Monday and injected more cash into the banking system.

The Shenzhen government began investigating the wealth management unit of ailing developer Evergrande, in a clearest sign yet the authorities could move to contain contagion risks. The stock gained 3.5 per cent.

The banking sub-index rose 2.1 per cent on property rebound.

The coal sub-index gained 3.3 per cent amid supply crunch, which has led to power cuts across households to industrial sectors in China.

More compnaies announced their operations have been hit by the widening power curbs, while China's State Grid Corp pledged to ensure basic power supply and avoid electricity cuts.

In Hong Kong, the Hang Seng Property Index and the Hang Seng Mainland Properties Index jumped 3.4 per cent and 7.6 per cent, respectivelly.

Sunac China Holdings leaped more than 17 per cent, as it clarified reports, saying the group's construction projects and operations across the country are normal and sales have been good.

Hang Seng Tech Index added 1.9 per cent, with e-commerce giant Alibaba Group jumping 6 per cent.

Chinese technology executives, facing a crackdown by the authorities, pledged support on Sunday for Beijing's "common prosperity" drive and to help smaller companies.

The energy sub-index was up 3.2 per cent.

REUTERS