China stocks buoyed by bank profits, high-tech; Hong Kong up 0.4 pct

Wanda Hotel Development

15/08/2017 05:53

* SSEC 0.6 pct, CSI300 0.5 pct, HSI 0.4 pct 
    * Bank A- and H-shares surge on rising profits 
    * Technology companies build on Monday's gains 
 
    SHANGHAI, Aug 15 (Reuters) - China stocks extended gains on 
Tuesday as markets continued to recover from tensions over North 
Korea and profit taking, with banks among the top performers on 
expectations of stronger profits. 
    Markets were little fazed by U.S. President Donald Trump's 
decision to order a inquiry into China's intellectual property 
practices. The process could take a year, giving Beijing plenty 
of time to discuss the issue with Washington before it takes any 
action.  urn:newsml:reuters.com:*:nL2N1L01G0 
    The CSI300 index  .CSI300  rose 0.5 percent to 3,712.12 
points by the end of the morning session, while the Shanghai 
Composite Index  .SSEC  gained 0.6 percent to 3,258.16.  
    China CSI300 stock index futures for August rose 0.4 
percent, to 3,699.6, 12.52 points below the current value of the 
underlying index. 
    "After the correction on Friday, banks and insurance 
companies are rebounding following the strong performance of 
small and mid-sized companies yesterday," said Zhang Gang, an 
analyst at Central China Securities. 
    "News about rising profits are also a factor as banks' 
performance has exceeded market expectations." 
    China's banking regulator said late on Monday that 
first-half profits for commercial lenders rose nearly 8 percent 
from the same period in 2016, while the level of non-performing 
loans (NPLs) in June did not increase from March.  urn:newsml:reuters.com:*:nL4N1L03L0 
    The banks sub-index  .CSI300BI  rose 2.2 percent. 
    Bank of China  601988.SS  posted the strongest gains in the 
sector, rising 4.1 percent. China Merchants Bank Co Ltd 
 600036.SS  gained 3.6 percent. 
    Technology firms also continued to strengthen after gains on 
Monday. 
    Shares in iFlytek Co Ltd  002230.SZ  hit their highest level 
in more than two years in morning trade and were up 3.0 percent 
by midday. The company, which makes voice-recognition software, 
announced a 58.1 percent rise in first-half profits last week. 
    Security products manufacturer Zhejiang Dahua Technology Co 
Ltd  002236.SZ  jumped 4.7 percent to 25.06 yuan. Nomura and 
Deutsche Bank, both of which maintain a "Buy" rating on the 
company's shares, raised their target prices last week to 28.50 
yuan and 27.50 yuan, respectively. 
     
    HONG KONG 
    The Hang Seng index  .HSI  added 0.4 percent to 27,358.09, 
lifted by strong performance in mainland banks.   
    The Hong Kong China Enterprises Index  .HSCE  gained 1.2 
percent, to 10,832.92. 
    Industrial and Commercial Bank of China Ltd  1398.HK  gained 
3.9 percent. 
    Wanda Hotel Development Co Ltd  0169.HK  lost 1.4 percent 
after having surged 150 percent since the beginning of August.  
    Shares in the unit of Chinese conglomerate Dalian Wanda 
Group reached a two-year high yesterday after it said last week 
that it plans to buy assets worth over $1 bln from firms 
controlled by its billionaire founder Wang Jianlin  urn:newsml:reuters.com:*:nL4N1KW19O. 
    The index measuring price differences between dual-listed 
companies in Shanghai and Hong Kong  .HSCAHPI  stood at 128.41. 
    A value above 100 indicates Shanghai shares are pricing at a 
premium to shares in the same company trading in Hong Kong, and 
vice versa. 
 
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China stock market graphics suite     http://reut.rs/1NfkoGl 
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 (Reporting by Andrew Galbraith; Editing by Kim Coghill) 
 ((Andrew.Galbraith@tr.com; +86 21 6104 1779; Reuters Messaging: 
andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith)) 
 
Keywords: CHINA STOCKS/MIDDAY