SHANGHAI, Aug 11 (Reuters) - China and Hong Kong stocks
tracked global markets higher on Thursday, as
softer-than-expected U.S. inflation data prompted bets of less
aggressive rate hikes from the Federal Reserve.
** Sentiment was also aided by a sharp rebound in Chinese
property shares, after Longfor Group Holdings denied rumours
that it had missed payment on commercial paper.
** China's blue-chip CSI300 Index rose 1.5%, while
the Shanghai Composite Index gained 1.2%.
** Hong Kong's stock benchmark Hang Seng bounced
1.8%, after falling to three-month lows in the previous session.
** Slowing U.S. inflation may have opened the door for the
Federal Reserve to temper the pace of interest rate hikes,
easing the pressure of capital outflows from emerging markets,
** "Slower place of U.S. rate hikes is good news for growth
stocks such as major Internet firms," said Linus Yip, chief
strategist at First Shanghai Group. The Hang Seng Tech Index
** China stocks also benefit from signs of recovering risk
appetite, as outstanding margin loans rose to a four-month high
of 1.63 trillion yuan ($241.88 billion).
** But trading in Hong Kong remains tepid, which could limit
the strength of the rebound, Yip added.
** Property shares in both China and Hong Kong rebounded on
Thursday, led by a surge in Longfor.
** The Chinese developer said late on Wednesday that its
commercial paper dues had been settled without any deferred
payment, refuting rumours of its default.
** Shares of Alibaba gained roughly 3% in Hong
Kong, despite plans by SoftBank Group Corp to slash its
stake in the Chinese tech giant. Investors are relived that the
Japanese conglomerate will use a derivative called "prepaid
forward contracts", rather than directly selling shares in the
(Reporting by Shanghai Newsroom; Editing by Sherry