China shares up on property data, green vehicle surge

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Chinese shares ended higher Monday, lifted by strong gains of new energy vehicle (NEV) firms, stronger-than-expected loan data and the loosening of restrictions on stock index futures trading.

The benchmark Shanghai Composite Index rose 0.28 percent to close at 3,362.86 points. The Shenzhen Component Index gained 0.82 percent to 11,153.53 points.

NEV makers saw their shares surge, extending recent strong performances after a government official said China had started research on a timetable to phase out production and sales of fossil fuel cars.

Shares of Zhongtong Bus Holding Co., Ltd. and Yangzhou Yaxing Motor Coaches both rose by the daily limit of 10 percent, and BYD surged 8.5 percent.

New energy vehicles in Beijing. /AFP Photo

China's financial futures exchange said on Friday it was cutting margin requirements and transaction fees for certain stock index futures contracts, as regulators use an ongoing equity market recovery to relax restrictions imposed during a 2015 crash.

August loan data, released after the market close on Friday, showed Chinese banks extended more credit than expected, buoyed by demand from home buyers and companies.

China home price data on Monday was also well received, as home price rises continued to moderate after a series of government cooling measures - suggesting authorities have been successful in deflating a property bubble.

Construction on a property development site in Beijing, August 2017. /AFP Photo

Confidence was further supported by a central bank survey showing one-third of Chinese households still believe home prices will keep rising in the coming quarter, despite moves to cool the market down.

"People are finding that the property sector is not as bad as they expected, which is why major property firms have become investors' darlings," asset manager Windsor Capital said in a report.

Source(s): Reuters ,Xinhua News Agency