China stocks close higher, boosted by surge in property shares

20 Jan 2016 | Author: | No comments yet »

Japan stocks fall on easing worries; China gains.

Shares in Japan fell Monday amid worries that the central bank will be reluctant to expand its easing program in the coming year, while in China, property and brokerage shares surged. Japan’s Nikkei Stock Average NIK, -0.37% fell 0.3%, adding to its 1.9% decline on Friday when the Bank of Japan announced tweaks to its current bond buying program.

Chinese stocks got a boost from a surge in property shares as a fight unfolded between Wang Shi, chairman of China Vanke Co. 000002, +1.64% , the country’s largest property firm, and the firm’s new largest shareholder, a group of investors who have made an unsolicited effort to take control of Vanke. China Vanke’s Shenzhen-listed shares are now in a trading halt after Jushenghua and its affiliate Foresea Life Insurance wrestled largest shareholder position from China Resources Group this month.Vanke’s management last week disagreed with Jushenghua’s “barbaric” tactics, put the stocks on trading halt, is reportedly seeking to inject poison pills to fend off Jushenghua. Analysts say the corporate fight over China Vanke, which said it has plans to issue an undisclosed number of new shares, has boosted expectations that the property sector will remain attractive for big fund managers. Recent stake increases in financial blue chips are also boosting sentiment in China—brokerage firms were up including Citic Securities 0267, -0.58% and GF Securities 000776, +2.82% , which gained than 3%. “Insurance firms have allocated more capital in financial blue chips” and “this could be the catalyst for inflow of new funds by year-end,” said Xiao Shijun, an analyst at Guodu Securities. Among deals by insurers earlier this month, Anbang Insurance Group raised its stake in Sino-Ocean Land Holdings, and acquired a 5% stake in China Vanke.

In other currencies, China’s central bank guided the onshore yuan stronger against the U.S. dollar, breaking 10-straight sessions of setting the reference rate weaker. In Tokyo, shares of Toshiba Corp. 6502, -9.81% plunged 10% after the firm said it is likely to post a net loss of roughly ¥500 billion in the current fiscal year, owing to heavy restructuring costs after an accounting scandal. In Hong Kong, shares of Fosun International Ltd. were up 2.3%, even as the flagship of Chinese conglomerate Fosun Group 0656, +4.16% , said Sunday it had withdrawn its bid for London merchant bank BHF Kleinwort Benson. The company has said Guo was assisting in government investigations unrelated to the company, and the chairman had since reappeared at a company event last Monday.

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