China shares rally as rate cuts, factory data boost recovery hope

China Taiping Insurance Holdings

01/07/2020 05:43

BEIJING/SHANGHAI, July 1(Reuters) - China shares rallied on
Wednesday, as the central bank's move on rate cuts and the
country's improved June factory data continued to fuel hopes for
a quicker economic recovery.    
 
** At the midday break, the Shanghai Composite index  .SSEC  was
up 0.91% at 3,011.77, breaching the key 3,000-point level for
the first time since March 6. 
 
** China's blue-chip CSI300 index  .CSI300  was up 1.48%, with
its financial sector sub-index  .CSI300FS  rising 1.68%, the
consumer staples sector  .CSI000912  up 3.74%, while the real
estate index  .CSI000952  gaining 6.25%.
 
** Hong Kong markets are closed on Wednesday for a public
holiday. 
 
** The smaller Shenzhen index  .SZSC  was up 0.82% and the
start-up board ChiNext Composite index  .CNT  was weaker by
0.35%.
 
** China's central bank said on Tuesday it would cut the
re-discount and re-lending rates by 25 basis points as of July
1, in a move to reduce funding costs for smaller firms and rural
sectors.  urn:newsml:reuters.com:*:nL4N2E72SR
 
** China's factory activity grew at a faster clip in June after
the government lifted coronavirus lockdown measures and ramped
up support steps, a survey showed on Wednesday.  urn:newsml:reuters.com:*:nL4N2E80O2
 
** The gradual economic recovery will be the main theme in the
second half of 2020, according to China Securities, which is
likely to boost shares driven by the consumption pick-up. 
 
** Shares of China's biggest liquor makers hit record highs,
with Kweichow Moutai Co Ltd  600519.SS  rising 2.5% in the
morning session to hit an all-time high.  urn:newsml:reuters.com:*:nL4N2E80TG
 
** Shares in Chinese developers also gained on recovery hopes,
with the CSI300 real estate index  .CSI000952  rallying 6.25%,
marking its best session since Feb. 14.  urn:newsml:reuters.com:*:nL4N2E80YM
 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.33% while Japan's Nikkei index
 .N225  was down 0.44%.
 
** The yuan  CNY=CFXS  was quoted at 7.064 per U.S. dollar,
0.01% firmer than the previous close of 7.065. 

 (Reporting by Cheng Leng in Beijing, Luoyan Liu and Andrew
Galbraith in Shanghai; Editing by Rashmi Aich)
 ((cheng.leng@thomsonreuters.com; +8610-5669-2129;))