Thursday, December 8

China, HK stocks rebound as yuan slide pauses

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SHANGHAI — China and Hong Kong stocks rebounded on Thursday, following global markets, with sentiment also aided by a pause in the yuan’s slide, and fresh government attempts to aid the economy.

**Both the blue-chip CSI300 index and the Shanghai Composite Index had gained 0.3% by the lunch break, to 3,841.59 and 3,053.33, respectively. On Wednesday, the indexes closed at their lowest in nearly five months.

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** The Hang Seng index climbed 1.3% to 17,466.89, bouncing from an 11-year low hit in the previous session. The Hong Kong China Enterprises Index gained 1.2%.

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** Asian share markets rose following an overnight rebound on Wall Street, and after Britain’s central bank launched an emergency bond buying program to stabilize a sell-off in gilts.

** The Chinese stock market was also helped by a steadier yuan, after the People’s Bank of China on Wednesday warned against one-way currency bets, stressing that the yuan’s stability was a top priority.

** On Thursday, the state-owned Securities Times newspaper said in a front-page commentary that the yuan was unlikely to continue depreciating rapidly.

** China’s finance ministry plans to issue about 2.5 trillion yuan ($347.4 billion) in government bonds in the fourth quarter, and urged local governments to complete issuing the roughly 500 billion yuan in special bonds by the end of October under carryover quotas, two sources told Reuters.

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** Energy and healthcare stocks rose sharply, while banking and property shares fell.

** Tourism, media and liquor stocks weakened, as worries over COVID-19 outweighed optimism ahead of the Golden Week holiday.

** In Hong Kong, property shares slid further. An index tracking mainland developers listed in Hong Kong fell 2.5% to a record low, following Wednesday’s 6.4% slump.

** Shares of CIFI Holdings fell further, even as the Chinese property developer said it was trying to solve payment difficulties following a report that it defaulted on a debt. (Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)



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