China stocks hit nine-month high

China Daily (USA) - - BUSINESS - By BLOOMBERG

China’s stocks ex­tended gains to a nine-month high, on op­ti­mism the gov­ern­ment will boost spend­ing on in­fra­struc­ture and that ef­forts to curb prop­erty price gains will send money back into eq­ui­ties.

The Shang­hai Com­pos­ite In­dex ad­vanced 0.1 per­cent at the close on Tues­day, firm­ing in the fi­nal min­utes of trad­ing. Baoshan Iron & Steel Co rose 2.2 per­cent after re­port­ing its best quar­terly per­for­mance since 2012. China Com­mu­ni­ca­tions Con­struc­tion Co, a trans­porta­tion in­fra­struc­ture group, slipped 4.3 per­cent in its first de­cline in nine trad­ing ses­sions. TheHang Seng In­dex lost 0.2 per­cent.

China’s gross do­mes­tic prod­uct has in­creased at a 6.7 per­cent clip for three straight quar­ters, spurring op­ti­mism the econ­omy has sta­bi­lized. State-owned com­pa­nies have ad­vanced on bets the gov­ern­ment will speed up a struc­tural over­haul and boost spend­ing on large public projects. Chi­nese au­thor­i­ties in at least 21 cities have in­tro­duced home-buy­ing curbs, rang­ing from rais­ing down-pay­ment re­quire­ments to pur­chase bans. The value of China’s new home sales rose 61 per­cent in Septem­ber from a year ear­lier.

“The mar­ket is stag­ing a con­sol­i­da­tion after the re­cent de­cent gains and some of the lead­ing gain­ers, such as in­fra­struc­ture names, are see­ing profit tak­ing,” said Wu Kan, a fund man­ager at Shan­shan Fi­nance Co in Shang­hai. “The mar­ket may con­tinue to go up after the con­sol­i­da­tion. The crack­down on the prop­erty mar­ket is ac­tu­ally po­ten­tial good­news­forthe­stock­mar­ket.”

The Shang­hai Com­pos­ite closed at 3,131.94. The CSI 300 In­dex was lit­tle changed.

the gain in the bench­mark Shang­hai Com­pos­ite In­dex on Tues­day

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