China markets rise to new highs on signs of loose monetary policy

China's property and bank shares advanced, pushing benchmark indices to new highs of the year, on optimism that China will stick to a moderately loose monetary policy.

The People's Bank of China revealed it injected a RMB141bn into the money market this week in order ease a drop in liquidity caused by China State Construction Engineering Corp.'s IPO, the world's largest so far this year.

The Shanghai Comprehensive Index advanced 0.97 percent to 3328.49, the highest in 13 months. The SME Comprehensive Index added 0.39 percent to 47332.05. The Hang Sang Index rose 2.96 percent to19817.70. The Hang Sang Growth Enterprises Index climbed 1.78 percent to 615.41. The Hang Sang China Enterprise Index gained gained 2.98 percent to 11823.75.

Taiwan's TAIEX Index slid 0.06 percent to 6980.88.

Sinopec (SH:600028;HK:0386) climbed 3.06 percent on Shanghai and 5.28 percent on Hong Kong.

Yunnan Copper (SZ:000878), the country's third-biggest smelter of the metal, surged to the 10 percent trading cap after announcing it plans to spend about RMB 2.37bn to buy five companies from its parent. Jiangxi Copper Co.(SH:600362;HK:0358), the biggest, gained 3.13 percent on Shanghai and 2.56 percent on Hong Kong.

Industrial and Commercial Bank of China (SH:601398;HK:1398), China's largest bank, gained 0.96 percent on Shanghai trading and 1.92 percent on Hong Kong trading. Bank of China (SH:601988;HK:3988), third-largest, added 2.03 percent on Shanghai and 2.43 percent on Hong Kong. Minsheng Banking (SH:60006) climbed 4.64 percent.

The Hang Sang Property Index rose 4.13 percent to 27038.31, the highest of the year. Cheung Kong Holdings (HK:0001) advanced 3.55 percent. Hopson Development Holdings (HK:0754) surged 10.35 percent. Hengli Properties Development (HK:0169) climbed 10 percent. Hong Long Holdings (HK:1383) gained 9.38 percent.

Mainland listed property shares advanced 2.82 percent on average. China Vanke Co.(SZ:000002), China's largest listed developer, climbed 3.07 percent. Poly Real Estate Group Co.(SH:600048), the second-largest, gained 4.27 percent. Jiangxi Zhongjiang Real Estate Co.(SH:600053), Wolong Real Estate Group Co. (SH:600173), Gemdale Co.(SH:600383) and Guoxing Rongda Real Estate Co. (SZ:000838) all surged to the 10 percent trading cap.

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