China: Stocks hit 3-week highs as property shares up on price data

[SHANGHAI] China shares rose to three-week highs on Tuesday, underpinned by gains in property firms after data showed some signs that housing prices were starting to stabilise in the country's biggest cities.

Average new home prices in China's 70 major cities fell 0.4 per cent in January from December, a ninth straight monthly drop, but price falls in Beijing and Shanghai eased, raising hopes they may be bottoming out.

But market watchers quashed any hopes for a near-term rebound in the sector, citing a massive overhang of unsold homes.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.7 per cent, to 3,522.32 points, while the Shanghai Composite Index gained 0.8 per cent, to 3,247.43.

It was the seventh day in a row that the indexes have posted gains, marking their longest winning streak in two months.

Total volume of A shares traded in Shanghai was 22.7 billion shares, while Shenzhen volume was 14.9 billion shares.

Mainland China markets will be closed from Feb. 18 through Feb. 24 for the Lunar New Year holiday.

REUTERS