Chinese Stocks Get a Boost From Stimulus Hopes, Encouraging Data
Chinese stocks gained as traders assessed the impact of a proposal to transfer some off-balance-sheet debt of local governments to their official accounts and a gauge of service activity beat economists’ forecasts.
The CSI 300 Index climbed as much as 1.6%, after advancing 1.4% Monday amid expectations of additional stimulus from a meeting of China’s top legislative body. The Hang Seng China Enterprises Index advanced as much as 0.6%.
The National People’s Congress’s Standing Committee reviewed a proposal on Monday to transfer some off-balance-sheet debt of local governments to ease their financial burden in a move foreshadowed by officials.
“This is a good news because at least we will have local government bonds refinancing, and it will boost the expectation of other measures,” said Kenny Wen, head of investment strategy at KGI Asia Ltd. “But we still do not know the size and timing, the positive impact on today’s markets may be limited as investors will be in a ‘wait-and-see’ mode, especially ahead of the US election.”
The Caixin China services purchasing managers’ index rose to 52 last month from 50.3 in September, a statement showed Tuesday. The median forecast of economists surveyed by Bloomberg was 50.5.
Source : Bloomberg
