China stocks at highest in two weeks as c.bank seeks to stabilize yuan

CIG ShangHai Co

27/08/2018 06:37

* SSEC +1.4 pct, CSI300 +1.9 pct, HSI +2.1 pct
    * China cenbank revives "counter-cyclical factor" for yuan
fixing
    * Airline shares rally on stronger yuan

    SHANGHAI, Aug 27 (Reuters) - Shares in China reached their
highest levels in two weeks on Monday, buoyed by a stronger yuan
after the central bank moved to keep the currency market stable,
boosting airline stocks and other firms with heavy dollar
exposure.
    The Shanghai Composite index  .SSEC  was up 1.7 percent to
2,776.08 in early afternoon trade. 
    China's blue-chip CSI300 index  .CSI300  was up 2.2 percent,
while the financial sector sub-index  .CSI300FS  rose 1.3
percent. The consumer staples sector gained 3.3 percent, while
the real estate index was up 3.3 percent and healthcare
sub-index rose 3.9 percent.
    Chinese H-shares listed in Hong Kong  .HSCE  rose 2.5
percent at 11,071.01, while the Hang Seng Index  .HSI  was up 2
percent at 28,222.35. 
    The yuan hovered at a 2-1/2-week high against the U.S.
dollar on Monday after China's central bank revived a
"counter-cyclical factor" in its daily fixing to support the
currency, arresting a record 10-week slide that has rattled
global markets.  urn:newsml:reuters.com:*:nL3N1VI1FD
    The yuan  CNY=CFXS  was quoted at 6.8143 per U.S. dollar, 47
pips firmer than the previous close of 6.819.
    Airline shares were among the winners on Monday as investors
bet that a stronger yuan would boost their bottom lines. China
Southern Airlines  600029.SS  gained 4.5 percent and Air China
 601111.SS  was up 3.8 percent.
    The smaller Shenzhen index  .SZSC  rose 2.3 percent and the
start-up board ChiNext Composite index  .CHINEXTP  was higher by
2.9 percent.
    Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 1.1 percent while Japan's Nikkei
index  .N225  was up 1 percent.
    Shares around the region were supported by Federal Reserve
Chair Jerome Powell's comments on Friday that a gradual approach
to raising rates was best to protect the U.S. economy and job
growth. urn:newsml:reuters.com:*:nL2N1VG053
    At midday, the largest percentage gainers on the main
Shanghai Composite index included CIG ShangHai Co Ltd
 603083.SS , up 10.02 percent, followed by Olympic Circuit
Technology Co Ltd  603920.SS , rising 10.02 percent, and SEC
Electric Machinery Co Ltd  603988.SS  with a 10 percent gain.
    Shanghai's largest percentage losses were Gansu Gangtai
Holding Group Co Ltd  600687.SS , down 10.07 percent, followed
by Xingjiang Korla Pear Co Ltd  600506.SS , off 9.96 percent,
and Anxin Trust Co Ltd  600816.SS  down by 7.36 percent.
    The Shanghai index is down 17.47 percent so far this year,
while China's H-share index is off by 7.9 percent. Shanghai
stocks have declined 5.11 percent this month. 
    The top gainers among H-shares at midday included Guangzhou
Automobile Group Co Ltd  2238.HK , up 7.35 percent, followed by
Dongfeng Motor Group Co Ltd  0489.HK , gaining 5.46 percent, and
China Resources Land Ltd  1109.HK , up by 4.99 percent.
    Declining H-shares were led by China Shenhua Energy Co Ltd
 1088.HK , down 0.47 percent, Guangdong Investment Ltd
 0270.HK , off 0.4 percent, and ZhongAn Online P & C Insurance
Co Ltd  6060.HK , down by 0.1 percent.
    Some 6.96 billion shares have traded so far on the Shanghai
exchange on Monday, roughly 52.1 percent of the market's 30-day
moving average of 13.35 billion shares a day. The volume traded
on the last full trading day was 10.05 billion shares.
    As of 04:51 GMT, China's A-shares were trading at a
premium of 16.81 percent over Hong Kong-listed H-shares.
    In Hong Kong, the sub-index of the Hang Seng index tracking
energy shares  .HSCIE  rose 2.7 percent while the IT sector
 .HSCIIT  was up 1.7 percent.
    The top gainer on the Hang Seng was Sunny Optical Technology
Group Co Ltd  2382.HK , up 6.68 percent, while China Shenhua
Energy Co Ltd  1088.HK  led declines with a loss of 0.47
percent.

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China stock market graphics suite     http://reut.rs/1NfkoGl
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 (Reporting by Andrew Galbraith
Editing by Darren Schuettler)
 ((Andrew.Galbraith@tr.com; +86 21 6104 1779; Reuters Messaging:
andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))