China blue-chips jump most in 5 months on strong foreign inflows

 China blue-chip stocks staged their biggest jump in five months on Thursday on strong foreign inflows, with overseas investors snapping up big-cap Chinese companies as policy expectations and the market's low valuation offered attractive opportunities.

** The blue-chip CSI 300 Index .CSI300 closed up 2.3%, logging the biggest gain since July 25, and the Shanghai Composite Index .SSEC added 1.4%.

** Hong Kong's Hang Seng Index .HSI surged 2.5%, and the Hang Seng China Enterprises Index .HSCE climbed 2.9%.

** The broad Asian shares scaled five-month peaks, as market wagers on ever-more aggressive rate cuts extended a huge rally in U.S. stocks and bonds, while also leaving plenty of scope for disappointment in the new year.

** Foreign investors bought a net 13.5 billion yuan ($1.90 billion) of Chinese stocks via the Stock Connect on the day, booking the biggest daily inflow in five months.

** In mainland markets, new energy stocks .CSI399808 jumped 6.5% to lead the gains, while shares in real estate developers .CSI000952, consumer staples .CSICS and tourism firms .CSI930633 rose between 2.8% and 3.8%.

** "In the market, valuation and sentiment indicators are all at record low levels," said Huajin Securities in a note, adding there is limited room for further decline.

** The broker said markets expected possible rate cuts early next year, while recent data showing double-digit gains in China's November industrial profits also helped sentiment.

** China will strive to expand domestic demand, ensure a speedy economic recovery and promote stable growth, according to an interim report on China's 14th five-year plan published by parliament on Wednesday.

** Tech giants listed in Hong Kong .HSTECH gained 3.4%, with food delivery giant Meituan 3690.HK up 5.2%. The Hang Seng Mainland Properties Index .HSMPI advanced 4.7%.

https://www.nasdaq.com/articles/china-blue-chips-jump-most-in-5-months-on-strong-foreign-inflows