HK stocks claw back lost ground as further stimulus on the cards

China Resources Beer Holdings

25/05/2020 10:06

* HK->Shanghai Connect daily quota used 3.8%, Shanghai->HK
daily
quota used 5%
    * HSI +0.1%, HSCE +0.4%, CSI300 +0.1%
    * FTSE China A50 +0.4%

    May 25 (Reuters) - Hong Kong stocks reversed early losses to
end higher on Monday, helped by gains in tech and consumer
firms, in anticipation of further stimulus measures from Beijing
to boost domestic consumption and seek tech self-sufficiency. 
    ** At the close of trade, the Hang Seng index  .HSI  was up
22.10 points or 0.1% at 22,952.24. The Hang Seng China
Enterprises index  .HSCE  ended 0.42% firmer at 9,465.94.
    ** The top gainer on the Hang Seng was Hong Kong Exchanges
and Clearing Ltd  0388.HK , which gained 6.18%, while the
biggest loser was Hang Seng Bank Ltd  0011.HK , which ended
3.79% lower.  
    ** Leading the gains, the Hang Seng IT index  .HSCIIT  rose
1.7%, while the Hang Seng consumer staples index  .HSCICS 
closed up 1.6%. 
    ** Sectors related to domestic demand would benefit as China
will boost domestic demand to ensure jobs this year amid the
coronavirus outbreak, analysts at Sinolink Securities noted in
report. 
    ** In its yearly work report, Chinese government announced a
range of fiscal measures to bolster the economy, equal to about
4.1% of China's GDP, according to Reuters calculations based on
the fiscal stimulus announced.  urn:newsml:reuters.com:*:nL4N2D6084 
    ** Recent policy documents further stressed China's tech
innovation capabilities, indicating the country's emphasis on
tech self-sufficiency amid the U.S. tech blockade, Dongguan
Securities analysts said in a report. 
    ** The United States said on Friday it would add 33 Chinese
firms and institutions to an economic blacklist for helping
Beijing spy on its minority Uighur population or because of ties
to weapons of mass destruction and China's military.
 urn:newsml:reuters.com:*:nL1N2D41U3 
    ** Investor focus was still on the mounting Sino-U.S.
tensions and Beijing's push for a security law on Hong Kong. 
    ** The United States should stop wasting time in its fight
against the coronavirus and work with China to combat it, rather
than spreading lies and attacking the country, the Chinese
government's top diplomat Wang Yi said on Sunday.  urn:newsml:reuters.com:*:nL4N2D604O 
    ** Hong Kong's security chief said "terrorism" was growing
in the city, as government departments rallied on Monday behind
Beijing's plans to introduce national security laws and after
thousands took to the streets to protest against the move.
 urn:newsml:reuters.com:*:nL4N2D70AW 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.59%, while Japan's Nikkei index
 .N225  closed up 1.73%.
    ** The yuan  CNY=CFXS  was quoted at 7.1397 per U.S. dollar
at 0819 GMT, 0.12% weaker than the previous close of 7.131. 
    ** At close, China's A-shares were trading at a premium of
26.84% over Hong Kong-listed H-shares.

 (Reporting by Luoyan Liu and Andrew Galbraith, Editing by
Sherry Jacob-Phillips)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))