China stocks fall as consumer, healthcare firms weigh; Hang Seng up

Shenzhou International group

16/07/2021 05:20

* SSEC flat, CSI300 -0.3%, HSI +0.4%
    * HK->Shanghai Connect daily quota used -2.9%, Shanghai->HK
daily
quota used 2.4%
    * FTSE China A50 -0.8%

    BEIJING, July 16 (Reuters) - China stocks dropped on Friday
with consumer shares leading the loss, but are on track to post
a weekly gain, boosted by the central bank's surprise cut in
cash that banks have to hold as reserves and hopes for further
easing policies.
** At the midday break, the Shanghai Composite index  .SSEC  was
 edged down 0.02% at 3,563.79 points, while the blue-chip CSI300
index  .CSI300  was down 0.34%. 
** The consumer staples sector  .CSI000912  was down 1.13%, and
the healthcare sub-index  .CSI300HC  was down 0.27%.
** For the week, CSI300 so far increased 1.27%, while the SSEC
also added 1.13%.
** China's central banks made a surprise cut in banks' reserve
requirement ratio (RRR) last Friday, releasing around 1 trillion
yuan in long-term liquidity, lifting hopes for further policy
supports throughout the week.  urn:newsml:reuters.com:*:nL2N2OL0KC
** Investors' sentiment was also lifted by better-than-expected
June activity data including retail and industrial output,
driven by a rebounding developed market demand coupled with the
sluggish recovery in Southeast Asian exporters.
 urn:newsml:reuters.com:*:nL1N2OR03Z urn:newsml:reuters.com:*:nL1N2OR054
** The brokerage recommended sectors with long-term growth
potential, as well as investment themes including carbon
neutralization and self-sufficiency in key technologies.
** "(But) as uncertainties about (China's) monetary policy and
sector regulation persist, (it is) likely putting pressure on
stock valuations in the second half of the year," said Zhu
Chaoping, Global Market Strategist with J.P. Morgan Asset
Management.
** Chinese H-shares listed in Hong Kong  .HSCE  rose 0.19% to
10,194.06, while the Hang Seng Index  .HSI  was up 0.45% at 
28,121.00. 
** The smaller Shenzhen index  .SZSC  was down 0.28%, the
start-up board ChiNext Composite index  .CNT  was weaker by
1.12% and Shanghai's tech-focused STAR50 index  .STAR50  was
down 0.89%​.
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.27% while Japan's Nikkei index
 .N225  was down 0.87%.
    

 (Reporting by Cheng leng and Andrew Galbraith; Editing by
Shailesh Kuber)
 ((cheng.leng@thomsonreuters.com; +8610-5669-2129;))