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China: Stocks rebound, led by ChiNext, property shares
[SHANGHAI] China stocks rebounded slightly on Tuesday, as real estate shares jumped on encouraging price reports, while small-caps bounced on signs of foreign interest.
But trading remained thin as investors are still concerned about the economy, and worry about market liquidity as regulators step up their crackdown on speculative trading while nine companies launch initial public offers this week.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.4 per cent, to 3,189.05, while the Shanghai Composite Index gained 0.6 per cent to 2,971.28 points.
Shenzhen's start-up board ChiNext rebounded 0.8 per cent on Tuesday, snapping a four-day losing streak, on signs that some foreign investors are bargain hunting China's small-caps after the index's recent weakness.
CSOP SZSE ChiNext Index ETF, which allows direct foreign investment into China's ChiNext board, recorded HK$10 million (S$1.73 million) in net inflows in recent days, and trades at a significant 2.44 per cent premium over the ETF net asset value. A premium in ETF reflects hot investor demand.
Real estate stocks were also firm on Tuesday, rising 1.6 per cent, amid reports that home prices in China's 100 major cities have posted month-on-month gains for 15 months in a row.