China shares continued their upward momentum today ahead of key manufacturing number that could boost the bourse further.
Shares put up the best show in two months yesterday, led by gains in the financial and real estate sectors as more clarity emerged about potential curbs on home sales.
The Shanghai Composite Index was up 2.7% on Wednesday, the highest gain since January 14.
The Index was up 0.50% at 2,328 points in early trade today.
Shares rose yesterday after details emerged about Beijing city's plan to adopt more home sales curbs, announced by the central government earlier this month.
The curbs may include different capital gains tax rate based on the duration of property ownership and closing a loophole that helps divorcing couples to evade the tax on second homes.
Single residents may also be limited to owning just one home, the report said.
The Chinese government has been trying hard to cool the heated property market and the clarity on the measures have eased investor concerns over the specific plans that will be implemented.
But while the rally also was accompanied by high volume trading, the key question remained whether the rally was sustainable.
Analysts pointed out that while nothing has fundamentally changed yet, the rally could go on if the PMI figures pointed to better recovery pace. Key manufacturing data is expected today from HSBC and Markit Economics.
The PMI came in at 50.4 in February and a reading above 50 indicates expansion.
While the market is looking for cues from the PMI data, a prominent US tipster said the Shanghai equity index could rally as much as 28% by September.
He noted that the market should rally once it falls below 2, 232. The tipster had accurately predicted the 8% fall in the index.
*
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 1 hour ago.
Shares put up the best show in two months yesterday, led by gains in the financial and real estate sectors as more clarity emerged about potential curbs on home sales.
The Shanghai Composite Index was up 2.7% on Wednesday, the highest gain since January 14.
The Index was up 0.50% at 2,328 points in early trade today.
Shares rose yesterday after details emerged about Beijing city's plan to adopt more home sales curbs, announced by the central government earlier this month.
The curbs may include different capital gains tax rate based on the duration of property ownership and closing a loophole that helps divorcing couples to evade the tax on second homes.
Single residents may also be limited to owning just one home, the report said.
The Chinese government has been trying hard to cool the heated property market and the clarity on the measures have eased investor concerns over the specific plans that will be implemented.
But while the rally also was accompanied by high volume trading, the key question remained whether the rally was sustainable.
Analysts pointed out that while nothing has fundamentally changed yet, the rally could go on if the PMI figures pointed to better recovery pace. Key manufacturing data is expected today from HSBC and Markit Economics.
The PMI came in at 50.4 in February and a reading above 50 indicates expansion.
While the market is looking for cues from the PMI data, a prominent US tipster said the Shanghai equity index could rally as much as 28% by September.
He noted that the market should rally once it falls below 2, 232. The tipster had accurately predicted the 8% fall in the index.
*
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 1 hour ago.