April 18, 2012 (Chinavestor) Chinese stocks had their best day in months following positive global and domestic economic news. The IMF raised global forecast outlook to 3.5% this year from 3.1% effectively saying that hard landing is not an option for China. Additionally housing prices fell in 37 cities out of of 70 the government monitors suggesting curbs are working and next step may be easing. The Shanghai Composite Index (SSA:000001) surged 1.9% while the Hang Seng Index (INDEXHANGSENG:.HSI) rose 218.4 points or 1.1%. Real estate, securities and insurance companies led the advance in Shanghai on market outlook. Poly Real Estate (SHA:600048), the largest Shanghai listed property developer, jumped 4.7%, the most for the year. China Vanke (SHE:200002), the largest developer of the nation, surged 4.4%. Citic Securities SHA:600030) and Haitong Securities (SHA:600837) rose over 4%.
The advance was similarly universal in Hong Kong, stocks that advanced outnumbered those that fell eight to one among components of the 42 member Hang Seng Index (INDEXHANGSENG:.HSI). China Eastern Airlines (HGK:0670) bottomed out and rose 2.24% after hitting six months lows. Mining, steel and energy stocks led the advance as growth outlook for the world second largest economy improved.