CHINA’S stocks jumped to their highest in more than seven months yesterday, led by property and financial shares, as investors bet that disappointing economic data for July would prod the government to unleash fresh stimulus.

    Reports that details of a stock trading link between the Hong Kong and Shenzhen stock exchanges will be announced shortly also helped to boost market sentiment.

    The blue-chip CSI300 index jumped 3.01 percent to 3,393.42 points, while the Shanghai Composite Index gained 2.44 percent to 3,125.20 points. Both indexes hit levels not seen since early January.

    China reported weaker-than-expected investment, lending, retail spending and factory output data Friday, on top of weak trade numbers, keeping alive hopes the government will roll out more support measures this year to meet its ambitious economic growth targets.

    “In light of persistent headwinds from the external sector, weak business sentiment, and a cooling property market, we believe that policymakers need to accelerate policy easing and reforms,” Li Jing, an economist at HSBC, wrote in a note.

    The ChiNext Index rose 3.27 percent after Hong Kong Economic Journal said small-cap shares in Shenzhen will be included in the Hong Kong-Shenzhen stock connect program and the start date may be announced as soon as this week.

    A measure of real estate companies posted its steepest two-day rally in almost a year after stake purchases by China Evergrande Group fueled optimism of more mergers.

    “The market is expecting the connect will be open shortly,” said Linus Yip, a strategist at First Shanghai Securities Ltd. in Hong Kong. “There’s much talk about mergers and acquisitions” in the real estate industry, he said.

    The China Securities Regulatory Commission is pushing ahead with preparations for the link between Hong Kong and Shenzhen, which expands on an existing connect with Shanghai, and the program will start this year when appropriate, the regulator’s spokesman Deng Ge said at a briefing in Beijing on Friday.

    The aggregate quota will be abolished for the Hong Kong-Shanghai link, while only daily caps will be imposed on the Shenzhen program, Hong Kong Economic Journal reported, citing unidentified funds briefed by exchange officials. (SD-Agencies)