China blue-chips post biggest daily gain in 7 weeks on robust factory data

China's blue-chip stocks rose on Tuesday by their most in more than seven weeks, as better-than-expected manufacturing survey data underscored a continued recovery in the world's second-largest economy.

China's factory sector activity grew at its fastest pace in a decade in November, a business survey showed, as the economy rebounds to pre-pandemic levels.

Analysts at Nomura said the robust factory data reflected momentum behind China's recovery from pandemic-related paralysis earlier in the year.

"We believe November's rise in the Caixin manufacturing PMI was partly a function of its sharp drop in spring this year, and partly a reflection of decent sequential growth momentum, and we expect PMIs to remain buoyant in coming months," they said in a note.

At the close, the blue-chip CSI300 index was up 2.15%, its biggest daily rise since Oct. 12. The Shanghai Composite index rose 1.77% to 3,451.94.

The CSI300 financial sector sub-index rose 2.83%, the consumer staples sector added 1.52% and the healthcare sub-index jumped 3.17%.

But the real estate index lagged, gaining only 0.13% after weak housing data.

Chinese new home prices growth eased slightly in November, weighed by tighter market curbs in larger cities and increased demand weakness in smaller towns, a private survey showed.

China's property market is the biggest "grey rhino" - a very obvious yet ignored threat - in terms of financial risks, given it is so deeply intertwined with the financial industry, the country's chief banking regulator said on Monday.

The smaller Shenzhen index ended up 1.51% and the start-up board ChiNext Composite index was 2.53% higher.

At 07:08 GMT, the yuan was quoted at 6.5686 per U.S. dollar, 0.16% firmer than the previous close of 6.5792.