China stocks buoyed by debt-reduction plan; HK takes breather after rally

martes 11 de octubre de 2016 00:54 GYT

* SSEC 0.4 pct, CSI300 0.3 pct, HSI -1.2 pct

* Gov's debt-reduction plan needs a vibrant equity market-analysts

* China property shares rebound sharply on signs of strong growth

SHANGHAI, Oct 11 (Reuters) - China stocks rose to a one-month high on Tuesday after Beijing unveiled guideliness to cut massive corporate debt, potentially leading to consolidation among some state-owned companies and drawing more investor interest into equities.

But Hong Kong shares fell over 1 percent, after trading resumed following Monday's holiday, as some investors took profit from the market's recent rally.

China's blue-chip CSI300 index rose 0.3 percent, to 3,304.22 points by lunch break, while the Shanghai Composite Index gained 0.4 percent, to 3,059.55 points.

Investors welcomed newly-released plans to reduce rising corporate debt by the Chinese government, which will take a multi-pronged approach including encouraging mergers and acquisitions, bankruptcies, debt-to-equity swaps and debt securitisation.

"For such a plan to be successful, you need a vibrant equity market," said Yang Hai, analyst at Kaiyuan Securities.

"The government apparently wants to channel money from the property market to the equity market, which can serve the economy in a better way," he said, referring to fresh curbs by many city governments over the past week to discourage property speculation.   Continuación...