China, Hong Kong stocks firm as new virus cases fall

Guangdong Investment

19/02/2020 04:46

* SSEC +0.3%, CSI300 +0.5%, HSI +1%, HSCE +0.4%
    * New cases fall for 2nd day on the mainland, lowest since
Jan 29
    * China cuts some pension contributions, insurance fees

    SHANGHAI/HONG KONG, Feb 19 (Reuters) - Chinese stocks ticked
higher on Wednesday as new virus cases in mainland China fell to
a more than three-week low, although worries about the financial
fallout from the epidemic capped gains. 
** At the midday break, the Shanghai Composite index  .SSEC  was
up 0.3% at 2,994.07 points. The blue-chip CSI300 index  .CSI300 
was up 0.5%.
    
** CSI300's financial sector sub-index  .CSI300FS  rose 0.7%,
the consumer staples sector  .CSI000912  gained 1.8%, the real
estate index  .CSI000952  edged up 0.1% and the healthcare
sub-index  .CSI300HC  fell 0.9%.
 
** Chinese H-shares listed in Hong Kong  .HSCE  rose 1%, while
the Hang Seng Index  .HSI  edged up 0.4% to 27,651.41. 
 
** The smaller Shenzhen index  .SZSC  rose 0.5% and the start-up
board ChiNext Composite index  .CNT  was weaker by 0.5%.
 
** The number of new coronavirus infection cases fell for a
second straight day on Wednesday in mainland China as
authorities tightened already severe containment measures in the
worst-hit city of Wuhan.  urn:newsml:reuters.com:*:nL4N2AJ09Y
    
** China's National Health Commission reported 1,749 new
confirmed cases of coronavirus infections, the lowest daily rise
since Jan. 29. In the outbreak's epicentre, Hubei province, new
infections fell to lowest since Feb. 11.

** Stocks are looking more positive as China's efforts to
contain the epidemic yield initial results and the workforce
returns, Guodu Securities analyst Xiao Shijun said in a report.
    
** The market is also underpinned by policy support and
deregulation such as tweaks to refinancing rules, said Zhang
Chi, analyst at Western Securities. Policymakers have
implemented a raft of measures to support the economy amid the
virus outbreak.  urn:newsml:reuters.com:*:nL4N2AA2CR
    
** China will cut some pension contributions and insurance fees
to help companies cope with the coronavirus, while firms in
Hubei are exempted from paying pensions, jobless and work-injury
insurance until June.  urn:newsml:reuters.com:*:nL4N2AI30W 
    
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.4%, while Japan's Nikkei index
 .N225  was up 0.8%.
 
** The largest percentage gainers in the main Shanghai Composite
index were Hefei Metalforming Intelligent Manufacturing Co Ltd
 603011.SS , Anhui Tongfeng Electronics Co Ltd  600237.SS , and
Anhui Xinli Finance Co Ltd  600318.SS , all up over 10%.
** So far this year, the Shanghai stock index is down 1.8%,
while CSI300 index is down 0.4%.
 
** By midday, China's A-shares were trading at a premium of
24.13% over the Hong Kong-listed H-shares.  .HSCAHPI 
 
** The Shanghai stock index is trading above its 50-day moving
average and above its 200-day moving average.
    

 (Reporting by Luoyan Liu and Noah Sin; Editing by Aditya Soni)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))