China's blue-chip index hits fresh 4-month high on reform hopes

SHANGHAI, Rabi’I 11, 1437, December 22, 2015, SPA — China stocks reversed initial losses and ended Tuesday slightly higher, with a resurgence in property shares helping to push the blue-chip CSI300 index to a fresh four-month high.

The CSI300 index edged up 0.3 percent, to 3,876.73, while the Shanghai Composite Index gained 0.3 percent, to 3,651.77 points.

Weakness in morning trading – triggered by worries about a new wave of initial public offerings – attracted buying from investors who have grown more sanguine about China’s economy after Beijing unveiled reform plans for 2016.

But in the near term, a new batch of eight IPOs, expected to freeze about 1.7 trillion yuan ($262 billion) of liquidity, remained a source of anxiety.

Two companies, Beijing Qianjing Landscape Co and Jiangsu Jingshen Salt & Chemistry Industry Co, are taking investor subscriptions on Tuesday, while the other six firms will kick off fundraising later this week.

Despite a late afternoon rally in property and IT stocks, many sectors, such as banking , healthcare and transportation remained in negative territory.

11:23 LOCAL TIME 08:23 GMT