Chinese stocks rose, sending a gauge of mainland companies in Hong Kong to its biggest gain in four months, amid speculation the government will do more to shore up economic growth.
PetroChina Co. (857) and China Petroleum & Chemical Corp., the biggest Chinese refiners, each surged at least 2.4 percent in the city. Aluminum Corp. of China Ltd. jumped more than 4 percent as prices for the metal reached a 16-month high. China Vanke Co. and Poly Real Estate Group Co. led gains for mainland developers after the National Business Daily said Wenzhou became the latest city to remove home-purchase restrictions.
The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, gained 2 percent to 10,562.49 as of 1:34 p.m. in Hong Kong. The article on easing property restrictions follows a report from the China Business News yesterday that the government granted a 1 trillion yuan ($161 billion) loan to China Development Bank to help fund subsidized housing. The central bank refrained from draining liquidity from money markets today, as policy makers seek to keep economic growth from slipping below their 7.5 percent target.