Stock markets in China went up by one percent. This is due to investors returning from a holiday and getting caught up in a buoyant world markets. The fresh mood post a week long break was quickly dampened when gains were restricted by selling in the property shares, more number of cities imposed restrictions on home purchases. The latter was done to cool the surging prices.
The property sector slid 2.3 percent on October 10 as news of fresh restrictions on properties filtered in. All other sectors, including resources and healthcare shares, rose leading gains.
Shares up in the mainland
The CSI300 index- considered as blue-chip- went up 1.2 points. It touched 3,291.49 points by middle of day. Gains were also seen in Shanghai Composite Index. It went up to 3,042.18- a gain of 1.3 percent. Shares in Asia, during the National Day holiday in China, went up to reach monthly peak highs. Stable behavior was also reported by stocks in Wall Street.
Chinese fund managers were less interested in the US presidential debate between Donald Trump and Hillary Clinton. Investors were more interested on impact of the new property measures which was introduced in the course of “Golden Week” holiday. These rules were put in place by a few Chinese cities. The governor of the central bank of China, via a few remarks on October 8, opposed the quick rise in price of homes and also the continuance of credit growth. All these signified further action.
Minimal impact of US elections
There was a positive response by investors on October 10 when a survey done privately showed that the services sector in China generated employment at its most scorching pace within seven months. Business especially picked up in September. Traders believe that the US presidential election results will have minimum impact on China- even though the election carries a specter of numerous economic and geographical uncertainties. Charles Wang of Appleridge Capital Management Co. holds the opinion that there will be increased uncertainty of Trump gets elected. However, the election of Clinton would mean the United States could adopt tougher trade measures against China. He said, regardless of who won, the impact can be controlled.
Wang added that the stock market in Hong Kong will be more sensitive towards election results compared to China as the latter is relatively closed thanks to tougher capital controls.