Home price data adds to investor optimism

Shanghai stocks rose on Monday as investors became more optimistic on the release of April home price data.

The benchmark Shanghai Composite Index added 0.24 percent to close at 2,875.42 points.

The smaller Shenzhen index was down 0.4 percent to 10,921.15 points while the blue chip CSI300 Index closed 0.26 percent higher at 3,922.91 points.

Market sentiment improved after the April data indicated a gradual recovery in the country’s property market. 

It was generally last month, with prices in 70 major cities showing milder month-on-month increases, according to data from the National Bureau of Statistics.

Kong Peng, a senior statistician at the bureau, said the demand for housing which had been curbed by the coronavirus outbreak was released further in April.

Yi Gang, governor of the People’s Bank of China, wrote in an article published on Saturday that China will strengthen monetary policy support for the economy as authorities fight the pandemic’s effects. 

Yi said the central bank will put more emphasis on policy flexibility while maintaining financial market stability.

Turnover on the two major bourses added up to 731.8 billion yuan (US$102.8 billion), compared with the previous trading day’s 627 billion yuan. Turnover on the Shanghai Stock Exchange was 289.1 billion yuan, up from the previous trading day’s 246.9 billion yuan.

Farming, consumer and transport shares were among the biggest gainers on the A-share market on Monday.

JinJian Cereals Industry Co Ltd jumped 6.58 percent to 11.82 yuan and Zijin Mining Group Co Ltd rose 5.08 percent to 4.14 yuan.