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China: Stocks rise sharply on stimulus hopes
[SHANGHAI] China stocks regained upward momentum on Thursday, jumping over 2 per cent amid signs that money has begun to flow back into equities, while the holding of a key Communist Party meeting later this month has raised expectations of fresh stimulus.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.4 per cent, to 3,486.82, while the Shanghai Composite Index gained 2.3 per cent, to 3,338.07 points.
Following the release of weak inflation data for September, China's economic planner said on Thursday that consumer prices will continue to rise at a mild pace in coming months, and approved six transportation projects worth 68.6 billion yuan (US$10.82 billion). "There seem to be considerable expectations of further economic stimulus, which could mitigate some deflationary pressures," said Gerry Alfonso, analyst at Shenwan Hongyuan Securities.
Reflecting rising risk appetite, outstanding margin loans in China rose in the past five sessions. Last week, investors'securities accounts witnessed weekly net inflows for the first time in six weeks.
Stocks in China rose across the board on Thursday, led by tech shares An index tracking telecom stocks jumped nearly 5 per cent, after China's three main telecom operators agreed to consolidate towers and related assets into a jointly owned firm, a move that would reduce duplication of telecom infrastructure.