Shanghai stocks hit 9-month high on China recovery optimism; HK rises

 Shanghai stocks rose to a nine-month high on Monday, as China's March home price data and signs of corporate earnings recovery fuel optimism ahead of the release of first-quarter economy data. Hong Kong shares also gained.

** The Shanghai Composite Index .SSEC, which had posted five consecutive weekly gains on Friday, climbed nearly 1% by the lunch break, touching its highest level since July 8. The bluechip CSI300 Index .CSI300 was up 0.9%.

** In Hong Kong, both the benchmark Hang Seng Index .HSI and the Hang Seng Tech Index .HSTECH rose 0.5%.

** China's new home prices rose in March at the fastest pace in 21 months, official data showed on Saturday.

** More than 300 China-listed companies have published, or forecast first-quarter results, 70% of which have reported year-on-year profit increases, official Securities News reported.

** Underscoring consumption recovery, restaurant operator China Quanjude Group 002186.SZ reported a 49% jump in sales during the January-March period, and turned to a profit.

** Travel-related companies including Lijiang Yulong Tourism Co 002033.SZ and BTG Hotels Group 600258.SS also expect a quarterly profit.

** "The stock market is expected to trend higher on the back of economic recovery, and expectations of improving liquidity situations overseas," Guotai Asset Management Co said in a note.

** A Reuters poll showed that China's gross domestic product (GDP), data for which will be published on Tuesday, likely grew 4.0% in the first quarter from a year earlier, from 2.9% in the previous three months. That would be the fastest growth since the first quarter of last year. nL4N36F339

** An index tracking hotel and catering industry .CSIH30036 jumped 2.5%, while energy stocks .CSIEN also gained 2.5%, reflecting recovery hopes.

** Investors continued to plough money into China's state-owned companies .CSI000926 on reform hopes. China Mobile 600941.SS shares jumped 3.8% in Shanghai, their highest since its debut last January. Its Hong Kong-listed stock rose 1.6%

https://www.xm.com/research/markets/allNews/reuters/shanghai-stocks-hit-9month-high-on-china-recovery-optimism-hk-rises-53522477