China brokerage shares rise as futures rules relaxed, but China, HK indexes fall

Haitong International Securities

17/02/2017 04:35

* SSEC -0.5 pct, CSI300 -0.2 pct, HSI -0.4 pct 
    * China relaxes trading rules on stock index futures 
    * HK stocks slide after closing at 18-month highs on 
Thursday 
 
    SHANGHAI, Feb 17 (Reuters) - Benchmark stock indexes in 
China and Hong Kong fell on Friday as investors took profits on 
resources shares, but losses were checked by strength in Chinese 
brokerage shares after authorities relaxed some rules on stock 
index futures trading. 
    China's blue-chip CSI300 index  .CSI300  fell 0.2 percent to 
3,433.19 points at the end of the morning session, while the 
Shanghai Composite Index  .SSEC  lost 0.5 percent to 3,214.62. 
    For the week, the indexes looked set to rise 0.6 percent, 
with market turnover gradually picking up to the highest since 
the week before the Christmas holiday. 
    "The market was relatively stable today, and brokerage plays 
were boosted by eased rules on stock index futures," Zhang Qi, a 
Shanghai-based analyst with Haitong Securities.  
    But Zhang cautioned that some financial stocks were driven 
by speculators and their strength could be short-lived. 
    China's securities regulator said late on Thursday it will 
relax certain rules on stock index futures trading as the 
government starts to gradually unwind restrictions imposed 
during the 2015 stock market meltdown that brought trading to 
almost a halt.  urn:newsml:reuters.com:*:nL4N1G13QQ 
    An index tracking brokerages  .CSI399707  rallied 3 percent 
in early trade but then slid to 0.9 percent at midday. 
    Central China Securities Co Ltd  601375.SS , Pacific 
Securities Co Ltd  601099.SS  and China Galaxy Securities Co Ltd 
 601881.SS  all jumped 10 percent at one point, the maximum 
allowed.  
    "Capital in the market is not enough to support a 
board-based rally, so sectors are taking turns to rise, based on 
what's the hottest topic that day," Zhang said. 
    Most sectors lost ground in China, but wine makers made 
solid performance, with a gauge of the liquor industry 
 .CSI930622  advanced 1.3 percent, hitting a seven-month high. 
    A gauge of non-ferrous metal firms  .CSISNMIM  shed 1.1 
percent and an index tracking coal miners  .CSI000820  lost 2 
percent, after a year-long rally in resources shares.           
    Hong Kong stocks fell on profit-taking after the main index 
settled at an 18-month high in the previous session.  
    The benchmark Hang Seng index  .HSI  dropped 0.4 percent, to 
24,011.26, while the Hong Kong China Enterprises Index  .HSCE  
lost 0.8 percent to 10,366.76. 
    The main index has gained 1.9 percent so far this week. 
    Nearly all sectors in Hong Kong fell by the lunch break, but 
tech stocks ticked up 0.1 percent as index heavyweight Tencent 
Holdings Ltd  0700.HK  advanced slightly.  
 
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China stock market graphics suite     http://reut.rs/1NfkoGl 
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 (Reporting by Jackie Cai and John Ruwitch; Editing by Kim 
Coghill) 
 ((Jackie.Cai@thomsonreuters.com; +86 021 6104 1775;)) 
 
Keywords: CHINA STOCKS/MIDDAY