China shares higher but gains muted as key rate left unchanged

Guangdong Investment

20/03/2020 05:02

* Shanghai Composite +0.47%, CSI300 +0.59%
    * Hong Kong's Hang Seng +2.81%
    * China surprises with no LPR cut; fiscal stimulus planned

    SHANGHAI, March 20 (Reuters) - Chinese shares edged higher
on Friday as wider Asian equities bounced back from a rout set
off by coronavirus fears, but sentiment was relatively subdued
after the country left its lending benchmark unchanged. 
        
** At the midday break, the Shanghai Composite index  .SSEC  was
up 0.47% at 2,714.77 points. Around the region, MSCI's Asia
ex-Japan stock index  .MIAPJ0000PUS  was firmer by 2.83%, as
Asian shares staged a rally after seven sessions of losses.
 urn:newsml:reuters.com:*:nL4N2BD0C0
 
** China's blue-chip CSI300 index  .CSI300  was up 0.59% at
midday, but was still on track for its worst week since October
2018. 
   
** The financial sector sub-index  .CSI300FS  was 0.78% higher,
while the consumer staples sector  .CSI000912  rose 1.21%. The
real estate index  .CSI000952  added 1.61% and the healthcare
sub-index  .CSI300HC  climbed 0.96%.
 
** The relatively small gains came after China kept its
benchmark lending rate unchanged, defying expectations for a cut
to ease borrowing costs in an economy jolted by widespread
disruptions to businesses from the virus outbreak.  urn:newsml:reuters.com:*:nL4N2BD0KK
 
** However, the country is set to unleash trillions of yuan of
fiscal stimulus to revive an economy expected to shrink for the
first time in four decades amid the virus pandemic, four policy
sources told Reuters.  urn:newsml:reuters.com:*:nL4N2BC3OW
 
** China's coronavirus infections from abroad hit a new daily
record on Thursday, pressuring authorities to hold the bar high
on already tough custom rules and public-health protocols.
 urn:newsml:reuters.com:*:nL4N2BD03O
 
** Chinese H-shares listed in Hong Kong  .HSCE  rose 3.42% to
8,852.39, while the Hang Seng Index  .HSI  was up 2.81% at
22,318.82. 
 
** The smaller Shenzhen index  .SZSC  inched up 0.17% and the
start-up board ChiNext Composite index  .CNT  was unchanged.
 
** The yuan  CNY=CFXS  was quoted at 7.0862 per U.S. dollar,
0.36% firmer than the previous close of 7.1119. 
 
** So far this year, the Shanghai stock index has lost 11.41%,
while China's H-share index is down 23.4%. Shanghai stocks have
declined 6.19% this month. 
 

 (Reporting by Andrew Galbraith; Editing by Devika Syamnath)
 ((Andrew.Galbraith@tr.com; +86 21 2083 0079; Reuters Messaging:
andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))