China stocks rise on trade talk hopes, policy support plans

Hengan International

09/01/2019 04:34

* SSEC +1.6 pct, CSI300 +2.0 pct, HSI +2.5 pct
    * U.S.-China trade talks to continue Wednesday
    * Auto shares gain after official pledges policy support

    SHANGHAI, Jan 9 (Reuters) - China stocks rose on Wednesday
as the United States and China extended trade talks for an
unscheduled third day, giving investors hope that they were
moving closer to a deal on trade, and as Beijing signalled more
support for domestic spending.

** At the midday break, the Shanghai Composite index  .SSEC  was
up 1.59 percent at 2,566.66.
 
** China's blue-chip CSI300 index  .CSI300  was up 1.95 percent,
with its financial sector sub-index  .CSI300FS  higher by 1.65
percent, and the healthcare sub-index up 2.41 percent.
 
** Chinese H-shares listed in Hong Kong  .HSCE  rose 2.61
percent to 10,397.96, while the Hang Seng Index  .HSI  was up
2.46 percent at 26,512.06.
 
** U.S. officials said the trade talks in Beijing would continue
into Wednesday amid signs of progress on issues including
purchases of U.S. farm and energy commodities and increased
access to China's markets.  urn:newsml:reuters.com:*:nL3N1Z83KS
 
** "We believe that the talks far exceeding their initial
timeframe indicates that both Chinese and U.S. officials are
determined to reach an agreement in these negotiations," Hu
Shaohua, an analyst at Donghai Securities, said in a note.
 
** Most Chinese automakers rallied after the vice chairman of
the country's state planner said China would introduce policies
to boost domestic spending on items including automobiles and
home appliances.  urn:newsml:reuters.com:*:nL3N1Z902W 
 
** Great Wall Motor Co Ltd  601633.SS  was up by the daily 10
percent limit in Shanghai and was 12.06 percent higher in Hong
Kong  2333.HK  after it signed a memorandum of understanding
with an Israel-based technology firm to develop autonomous
driving systems for China.  urn:newsml:reuters.com:*:nL8N1Z81H2 But BYD shares fell 2.36
percent in Shenzhen  002594.SZ  after reports of possible cuts
to subsidies for new-energy vehicles.  urn:newsml:reuters.com:*:nL3N1Z9199
 
** The smaller Shenzhen index  .SZSC  was up 1.56 percent and
the start-up board ChiNext Composite index  .CHINEXTP  was
higher by 1.21 percent.
 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 1.62 percent while Japan's Nikkei
index  .N225  was up 1.34 percent.
 
** The yuan  CNY=CFXS  was quoted at 6.8382 per U.S. dollar,
0.24 percent firmer than the previous close of 6.8548. 
 
** The largest percentage gainers in the main Shanghai Composite
index were Jinzhou Port Co Ltd  600190.SS , up 10.13 percent,
followed by Lifan Industry Group Co Ltd  601777.SS , gaining
10.1 percent and Changshu Fengfan Power Equipment Co Ltd
 601700.SS , up by 10.08 percent.
 
** The top percentage losers in the Shanghai index were Pengqi
Technology Development Co Ltd  900907.SS , down 6.25 percent,
followed by Holsin Engineering Consulting Group Co Ltd
 603909.SS , falling 4.22 percent and Shenyang Jinshan Energy Co
Ltd  600396.SS , down by 4.07 percent.
 
** So far this year, the Shanghai stock index is up 1.31
percent, while China's H-share index is up 0.1 percent. 
 
** The top gainers among H-shares were Great Wall Motor Co Ltd
 2333.HK , up 12.06 percent, followed by Guangzhou Automobile
Group Co Ltd  2238.HK , gaining 8.84 percent and China Petroleum
& Chemical Corp  0386.HK , up by 4.52 percent.
 
** The biggest H-shares percentage decliners were China Tower
Corp Ltd  0788.HK , which has fallen 3.23 percent, and Guangdong
Investment Ltd  0270.HK , down 0.5 percent.
 
** About 11.35 billion shares have traded so far on the Shanghai
exchange, roughly 84.8 percent of the market's 30-day moving
average of 13.38 billion shares a day. The volume traded was
15.81 billion as of the last full trading day.
 
** In Hong Kong, the sub-index of the Hang Seng index tracking
energy shares  .HSCIE  rose 3.6 percent while the IT sector
 .HSCIIT  rose 2.2 percent. The top gainer on the Hang Seng was
Geely Automobile Holdings Ltd  0175.HK , up 8.81 percent.

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