China’s index of blue chip shares hit a new yearly high as rumours swirled of a secret meeting to discuss property support measures.
The CHINA 50 had been testing the 13,807 level on different occasions this year and there is a chance for a breakout higher.
A Bloomberg index of China’s real estate stocks surged by as much as 11% on speculation of a high-level meeting next week that will help revive the struggling sector. Logan Group rose by up to 85% and Sino-Ocean Group was 37% higher.
Social media sources noted a possible high-level meeting similar to the Central Urban Work Conference of 2015, which was attended by President Xi Jinping, but it is unverified at present.
The news follows another slump in the Chinese property sector in June, adding to calls for further stimulus.
Alibaba is one Chinese stock that has seen recent selling, but a general market breakout could bring regret for those sellers. The company’s AI prospects provided a strong rally to the stock this year, but that sentiment is changing. Analysts are still bullish on the stock but recent market data showed mainland investors are abandoning Asia’s biggest tech stocks. During June, investors sold almost $6 billion of shares in Alibaba, Tencent, and Xiaomi via Hong Kong trading connections.
That selling has occurred at the 2025 resistance and caution should be taken until a breakout has been confirmed. Meanwhile, the Ministry of Commerce is reported to be meeting with senior US trade officials in early August to advance the ongoing trade talks between the two countries.
