China stocks up on property market hopes

<p>China stocks rise as government expected to relax property market rules.</p>

China’s stocks rose today (September 4th) as investors expect the government to relax listed developer issuance rules.

Such a move would help boost property market sentiment and help cash-strapped developers cope with a market downturn, according to Guotai Junan Securities Co, quoted by Bloomberg.

“Even though the economy looks weak, investors are expecting more stimulus and policy loosening,” said Zhang Haidong, an analyst at Tebon Securities Co. in Shanghai. “The upward momentum should continue," he added.

The Shanghai Composite Index rose for a fifth day, adding 0.8 per cent to reach 2,306.86, while the Hang Seng China Enterprises Index (HSCEI) gained 0.6 per cent.

Other Asian shares were mostly lower on profit-taking following a rally across the region the previous day.

Tokyo lost 0.33 per cent to 15,676.18 while Hong Kong was slightly lower, dipping 0.08 per cent to 25,297.92.

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