SHANGHAI, Nov 29 (Reuters) - China's blue-chip CSI300 index
on Tuesday rose seventh straight day to strike an
11-month high, with big-cap industry leaders easily
outperforming growth stocks.
The blue-chip CSI300 index rose 0.8 percent, to
3,564.04 points, while the Shanghai Composite Index
gained 0.2 percent to 3,282.92 points.
Investors were encouraged by more signs that China's economy
is stabilizing, with a Reuters poll showing manufacturing sector
activity likely held onto a modest expansionary trend this
"The markets are now fixated with companies with good cash
flow performance," said Ren Chengde said, a Shanghai-based
senior analyst at Galaxy Securities. "More cash means more
He said insurers were snapping up industrial companies for
the sake of higher dividends.
Chinese financial conglomerate Anbang Insurance Group's
high-profile move to increase its stake in China State
Construction Engineering from 10 percent have sent
the company's share price soaring, fuelling frenzied buying in
undervalued industry-leading blue-chips.
China State Construction's stock jumped 8.1 percent on the
day and is up more than 50 percent since early this month.
Anbang has said it plans to buy up to 3.5 billion more
shares in the company over the next 12 months.
Sectors were mixed, with big-cap blue-chips far
outperforming lacklustre growth stocks. Gains were
led by consumer and infrastructure stocks
, while resources stocks fell due to
weaker oil prices and metals retreating from highs.
Fresh home purchase curbs dampened investors' appetite for
properties, after China's Tianjin and Shanghai
introduced new measures to cool the frothy market.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Shri