China markets up as disappointing July data leaves no room for tightening measures
China markets rose today after disappointing July economic data for left the government no leeway to reintroduce tightening policies.
Value-added industrial production expanded 10.8 percent in July from the year before, slightly higher than June's 10.7 percent growth but below expectations. The consumer price index also dipped 1.8 percent in July from a year earlier and RMB denominated loans slowed to RMB355.9bn from RMB1.53 trillion in June.
The Hang Seng rose 0.7 percent, with the Hong Kong market closing at its highest in nearly a year. The China Enterprises Index, representing top Hong Kong-listed mainland Chinese stocks, also up 0.7 percent. Analysts expect a pull back soon as investor lock in recent profits.
The Shanghai Composite Index closed 0.5 percent up with winners outnumbering losers by 585 to 334. Turnover was at a six-week low of RMB122.2bn.
Taiwan's Taiex index was up 0.4 percent.
The Hang Seng Property Index gained 1.16 percent. Mainland listed developers also advanced 1.15 percent on average.
Shanghai Waigaoqiao Free Trade Zone (SH:600648) rose 5.7 percent. Shanghai Lujiazui Finance & Trade Zone (SH:600663) went up 4.7 percent. China Vanke (SZ:000002) was up 1 percent. Tian Teck Land Limited (HK:0266) rose 4.8 percent. Hopson Development Holdings Limited (SH:0754) was up 3.9 percent.
Beijing is planning to invest at least RMB700bn per year building new railway lines over the next three years, the vice minister of railways Wang Zhiguo announced yesterday. Panzhihua New Steel & Vanadium Co., Ltd. (SZ:000629), China's largest rail producer, surged 10 percent. China Railway Erju Co., Ltd. (SH:600528) rose 2.3 percent.
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