China, Hong Kong stocks rise on upbeat industrial profits data

Guangdong Investment

27/12/2019 04:26

* SSEC +0.9%, CSI300 +0.9%, HSI +1.2%
    * HK->Shanghai Connect daily quota used 4.6%, Shanghai->HK
daily
quota used 3.7%
    * FTSE China A50 +1.1%

    SHANGHAI, Dec 27 (Reuters) - China and Hong Kong stocks rose
on Friday as a rebound in November industrial profits and easing
trade tensions between Beijing and Washington whetted risk
appetite. 
    ** The CSI300 index  .CSI300  rose 0.9%, to 4,063.55, by the
end of the morning session, while the Shanghai Composite Index
 .SSEC  gained 0.9%, to 3,032.81. 
    ** Both indexes were on track for their fourth straight
weekly gain.
    ** Profits at industrial firms in November grew at the
fastest pace in eight months, breaking a three-month declining
streak, as production and sales quickened, but broad weakness in
domestic demand remains a risk for earnings next year.
 urn:newsml:reuters.com:*:nL4N28Z0LE 
    ** If policy easing or economic recovery beats market
expectations, financial and real estate stocks could lead a
further rally in the market, Yuekai Securities said in a report.
    ** Chances are small that the A-share market would trend
lower for now, as the environment is quite strong in terms of
policies, earnings and liquidity conditions, the brokerage
added.  
    ** Investors were also encouraged by signs that Beijing may
unveil more stimulative measures to boost the world's
second-largest economy. 
    ** China may allow local governments to issue about 10% more
special bonds in 2020 to help support economic growth, a senior
government economist said on Thursday, a smaller increase than
some analysts had been expecting.  urn:newsml:reuters.com:*:nL4N2901OF
    ** On Thursday, state media reported China plans trillions
of yuan in major infrastructure investments in 2020.
 urn:newsml:reuters.com:*:nB9N28L01G 
    ** China said it was in close contact with the United States
on signing a Phase 1 trade deal, and that both sides were still
going through necessary procedures before the signing.
 urn:newsml:reuters.com:*:nB9N28903U 
    ** In Hong Kong, the benchmark Hang Seng index  .HSI  hit a
five-month high.   
    ** The Hang Seng index climbed 1.2%, to 28,193.40, while the
Hong Kong China Enterprises Index  .HSCE  gained 1.3%, to
11,183.61.
    ** Reuters reported China had called on its biggest state
firms to take a more active role in Hong Kong, including
stepping up investment and asserting more control of companies
in the financial hub.  urn:newsml:reuters.com:*:nL3N26225W  
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.75%, while Japan's Nikkei index
 .N225  was down 0.03%.
    ** The yuan  CNY=CFXS  was quoted at 6.9994 per U.S. dollar,
0.02% weaker than the previous close of 6.998. 

($1 = 6.9988 Chinese yuan)  

 (Reporting by Luoyan Liu and Brenda Goh; Editing by Subhranshu
Sahu)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))