China stocks end higher, Evergrande's assurances lift real estate firms

Reuters2021-09-23

SHANGHAI, Sept 23 (Reuters) - China shares closed higher on Thursday, led by semiconductors and consumer staples, while debt-laden developer China Evergrande’s assurances lifted real estate stocks.

The blue-chip CSI300 index rose 0.7%, to 4,853.20, while the Shanghai Composite Index gained 0.4% to 3,642.22 points.

The real estate sub-index gained 1.8%, while the banking sub-index slipped 0.2%.

China Evergrande Group said it held an internal meeting late on Wednesday night, urging company executives to ensure the quality delivery of properties and redemption of wealth management products.

Evergrande said it had “resolved” one coupon payment due on Thursday but didn’t give more details, leaving it unclear what this means for $83.5 million in dollar bond interest payments due on the day.

Mizuho Bank analysts said they reckoned China’s central bank would firmly defend its bottom line of preventing systematic financial risk and the chaotic case of Evergrande’s bond default would be avoided.

Consumer staples rose 1.3%, while the energy sub-index dropped 2.1%.

China’s cabinet pledged on Wednesday to roll out policies to boost consumption, and use more market-based measures to stabilise commodity prices.

The semiconductors sub-index, the infrastructure sub-index, and the defence sub-index added more than 2% each.

(Reporting by Shanghai Newsroom; Editing by Ramakrishnan M.)

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