China stocks cut losses on capital market reform hopes

China Conch Venture Holdings

12/06/2020 06:09

* SSEC -0.4%, CSI300 -0.5%, HSI -1.3%
    * HK->Shanghai Connect daily quota used 1%, Shanghai->HK
daily
quota used 2.3%
    * FTSE China A50 -0.4%

    SHANGHAI, June 12 (Reuters) - China stocks fell sharply in
early trade on Friday after Wall Street dived on fears of a
COVID-19 resurgence, though they    regained most of the ground
following Beijing's pledge to push forward with capital market
reforms. 
    ** At the midday break, the Shanghai Composite index  .SSEC 
was down 0.38% to 2,909.73，while the blue-chip CSI300 index
 .CSI300  was down 0.45%.
    ** Both indexes fell as much as 1.7% soon after the market
started trading. 
     ** Wall Street tumbled on Thursday over growing concerns
that a resurgence of coronavirus infections could stunt the pace
of recovery in economies reopening from lockdowns.
    ** However, investors in the A-share market were encouraged
after Beijing said it would publish reform policies for the
Shenzhen start-up board to bolster its capital markets. 
    ** The reforms are part of Beijing's continued efforts to
seek tech self-sufficiency following its launch of STAR Market
last July. 
    ** The start-up board index  .CNT  inched up 0.1% by midday.
    ** "Chances for a second wave of coronavirus outbreak are
relatively low for us, while liquidity conditions are good at
the moment," said Liu Hongming, fund manager at Beijing-based
Dingxin Huijin Asset Management Company. 
    ** Liu attributed the calmness in China's onshore stock
market to a more modest rally in A-shares compared with their
U.S. peers. 
    ** Chinese H-shares listed in Hong Kong  .HSCE  fell 1.43%
to 9,802.78, while the Hang Seng Index  .HSI  was down 1.3% to 
24,162.78. 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 1.50%, while Japan's Nikkei index
 .N225  was down 0.70%.
    ** The yuan  CNY=CFXS  was quoted at 7.0848 per U.S. dollar,
0.29% weaker than the previous close of 7.064.

 (Reporting by Luoyan Liu and Andrew Galbraith)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))