China, Hong Kong stocks advance on stimulus hopes

jueves 15 de octubre de 2015 00:33 GYT

* CSI300 +1.4 pct; SSEC +1.4 pct; HSI +2.2 pct

* gov stimulus hopes rise ahead of Beijing's key economic meeting

* NDRC says inflation will remain mild in coming months

SHANGHAI, Oct 15 (Reuters) - China and Hong Kong stocks rose sharply on Thursday morning amid signs that some investors are returning to the market ahead of a key Communist Party meeting later this month, betting Beijing will unveil fresh stimulus to reinvigorate the economy.

Both the CSI300 index and the Shanghai Composite Index advanced 1.4 percent by lunchtime, to 3,454.74 points and 3,308.24 points, respectively.

Hong Kong's Hang Seng Index jumped over 2 percent to the highest level in nearly two months.

Following the release of weak inflation data for September, China's economic planner said on Thursday that consumer prices will continue to rise at a mild pace in coming months.

That, coupled with expectations that China's economic growth will fall below 7 percent for the first time since the global financial crisis in the third quarter, is fanning hopes of more government measures to aid growth.

"There seem to be considerable expectations of further economic stimulus, which could mitigate some of deflationary pressures," said Gerry Alfonso, analyst at Shenwan Hongyuan Securities.   Continuación...