Chinese stocks rise; property shares jump on policy support
SHANGHAI, March 27 (Reuters) - Chinese stocks rose on Friday, capping a week of volatile trade, as property shares surged due to government support measures, while Beijing's move to relax foreign investment rules improved market sentiment.
China's CSI300 real estate index jumped 3.9 percent after state media reports that Beijing had issued notices urging local governments to support residents needing to improve their housing conditions, and reduce or even suspend land supply in cities where there was a surplus of housing.
The impact of poor economic data released on Friday - showing profits earned by Chinese industrial firms fell 4.2 percent in January-February - was offset by expectations of fresh money inflows after China waived the $1 billion limit on foreign fund investment under the Qualified Foreign Institutional Investor (QFII) scheme.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.6 percent, to 3,971.70, while the Shanghai Composite Index gained 0.3 percent, to 3,691.10. On the week, both indexes were up about 2 percent.
Among the most active stocks in Shanghai were China Shipbuilding, down 2.0 percent to 10.23 yuan; China State Construction, up 3.0 percent to 7.22 yuan and Agricultural Bank Of China, down 0.3 percent to 3.64 yuan.
In Shenzhen, BOE Technology, up 0.8 percent to 4.04 yuan; Vanke, up 3.1 percent to 13.35 yuan and TCL Corp, up 0.5 percent to 5.86 yuan were among the most actively traded.
Total volume of A shares traded in Shanghai was 40.7 billion shares, while Shenzhen volume was 23.6 billion shares. (Reporting by Samuel Shen and Pete Sweeney; Editing by Alan Raybould)
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