HONG KONG, July 11 (Reuters) - China shares extended gains
in afternoon trade on Thursday, lifting Hong Kong markets, after
official media reported financing rules may be partially relaxed
for real estate firms.
At 0511 GMT, the CSI300 of the leading Shanghai
and Shenzhen A-share listings was up 4.3 percent, on track for
its biggest single day gain since Dec. 14 if gains hold. The
Shanghai Composite Index spiked 3 percent.
The Hang Seng Index was up 2.5 percent, while the
China Enterprises Index of the top Chinese listings in
Hong Kong soared 3.8 percent.
The official China Securities Journal reported on Thursday
that authorities may, subject to certain conditions, relax rules
on financing for listed-real estate developers, citing
unidentified industry players.
With the property sector affecting 40 other industries in
the world's second-largest economy, investors interpreted the
article as a form of policy easing that lifted other cyclical
Ahead of June money supply and loan growth data due by July
15, the official Shanghai Securities News reported that new
local currency yuan loans extended by China's big four
state-owned banks stood at an unusually large 170 billion yuan
($27.7 billion) in the first week of July.