China, Hong Kong stocks rebound; Vanke jumps as China Resources steps down

Vanke Overseas Investment Holding

13/01/2017 04:27

* SSEC +0.1 pct, CSI300 +0.4 pct, HSI +0.5 pct 
    * Vanke shares hit one-month intraday high 
    * Energy rebound on strong oil prices 
 
    SHANGHAI, Jan 13 (Reuters) - China stocks were up on Friday 
morning, on course to snap a three-day losing streak, as the 
property sector rebounded strongly on strength in China Vanke Co 
Ltd's  000002.SZ   1036.HK , the country's second largest 
developer.  
    Hong Kong stocks also rose, setting for a third week of 
gains, with support from the energy sector as oil prices 
advanced.   
    The benchmark CSI300 index  .CSI300  rose 0.4 percent, to 
3,330.61 points at the end of the morning session, while the 
Shanghai Composite Index  .SSEC  gained 0.1 percent, to 3,122.93 
points.  
    The benchmark index has lost more than 0.5 percent so far 
this week.  
    Investors cheered China Vanke Co Ltd's  000002.SZ   1036.HK  
breakthrough in a high-profile corporate power tussle lasting 
for over a year, after its No. 2 shareholder China Resources 
Group decided to sell its entire stake to Shenzhen Metro Group. 
 urn:newsml:reuters.com:*:nL4N1F21ZZ 
    Shares of the industry bellwether jumped around 7 percent on 
the mainland and 5.6 percent in Hong Kong at the lunch break. 
    But gains in China were limited as investors were awaiting 
the upcoming corporate earnings season to kick off late on 
Friday, to justify a flurry of solid economic data in the 
world's second largest economy. 
    Earlier this month, China's manufacturing sector posted a 
monthly expansion for the fifth time in December, but the pace 
slowed more than expected amid the government's effort to rein 
in soaring asset prices.  urn:newsml:reuters.com:*:nL4N1ES007 
    Sector performance in the mainland market was mixed, with 
property  .CSI300REI  leading the gains, up around 2.3 percent.  
    Insurance firms  .CSI930618  retreated 0.6 percent despite 
their premium income rising almost 30 percent in 2016, as 
investors stayed cautious amid a tightening regulatory 
environment.  urn:newsml:reuters.com:*:nL4N1F22SV 
    Metallurgical Corporation of China Ltd  601618.SS  slid 
around 2 percent after closing at a six-week high in the 
previous session, as optimism fuelled by restructuring hopes 
quickly faded.  
    The tech-heavy ChiNext sub-index  .CHINEXTC , China's 
equivalent of the Nasdaq  .IXIC , was set to lose for a seventh 
session and hit a six-month intraday low as faster approvals for 
IPOs boosted the supply of small-caps.  
    In Hong Kong, the Hang Seng index  .HSI  added 0.5 percent, 
to 22,932.47 points, bringing its weekly gain to around 1.9 
percent, while the Hong Kong China Enterprises Index  .HSCE  
gained 0.7 percent, to 9,792.44 points. 
    Nearly all sectors in the city gained modestly, with the 
energy sector  .HSCIE  the biggest performer, up nearly 2.4 
percent by the lunch break.  
    Oil majors including CNOOC Ltd  0883.HK  and PetroChina Co 
Ltd  0857.HK  rallied as oil prices held sharp gains from the 
previous two sessions.  
    
 
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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 Simon 
Cameron-Moore) 
 ((Jackie.Cai@thomsonreuters.com; +86 021 6104 1775;)) 
 
Keywords: CHINA STOCKS/MIDDAY