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China stocks rise over 1 pct after long holiday but property curbs weigh
October 10, 2016 / 4:56 AM / a year ago

China stocks rise over 1 pct after long holiday but property curbs weigh

* SSEC 1.3 pct, CSI300 1.2 pct, Hong Kong market closed

* China property shares slump on fresh purchase restrictions

* Impact of U.S. presidential election on China limited -traders

SHANGHAI, Oct 10 (Reuters) - China stocks rose over 1 percent on Monday as investors returning from a week-long holiday caught up to buoyant global markets, but gains were capped by selling in property shares as more cities imposed curbs on home purchases to cool surging prices.

The second U.S. presidential debate drew limited attention from fund managers in China, with investors more focused on the impact of fresh property measures introduced over the “Golden Week” holiday by over a dozen Chinese cities.

China’s central bank governor, in remarks released on Saturday, stepped up the rhetoric against rapid rises in home prices and continued credit growth, signalling further action.

China’s blue-chip CSI300 index rose 1.2 percent, to 3,291.49 points by the lunch break, while the Shanghai Composite Index gained 1.3 percent to 3,042.18.

During China’s National Day holiday, Asian shares flirted with one-month highs, while Wall Street stocks were also firm.

Investors also responded positively on Monday to a private survey result showing China’s services sector created jobs at the fastest pace in seven months in September as new business picked up.

Although the U.S. presidential election poses geopolitical and economic uncertainties, many traders say the impact on China is limited.

“If Trump is elected, there would be more uncertainty. If Clinton is elected, she would be tough on China. But whoever is elected, the impact would be under control,” said Charles Wang, Chairman of Shenzhen-based Appleridge Capital Management Co.

He added that Hong Kong’s stock market would be more vulnerable to the election results than China‘s, which is relatively closed due to strict capital controls.

News of the fresh property restrictions knocked the property sector down 2.3 percent on Monday.

All other sectors rose, with healthcare and resources shares leading the gains.

Shares in Baoshan Iron & Steel and Wuhan Iron And Steel Co Ltd shot up 10 percent, the maximum allowed, as trading resumed after the announcement of their merger plans.

Baosteel will acquire Wuhan Steel in a deal that will create the world’s second-largest steel producer as part of Beijing’s push to overhaul the stricken industry.

The Hong Kong market is closed on Monday for a holiday.

The benchmark Hang Seng Index finished up 2.4 percent last week, while the China Enterprises Index advanced 3.6 percent, their biggest weekly gains in four weeks.

Reporting by Samuel Shen and John Ruwitch; Editing by Kim Coghill

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