China, Hong Kong stocks flat after new lending reference rate

Want Want China Holdings

20/08/2019 05:45

* SSEC 0.1%, CSI300 0.0%, HSI 0.0%
    * HK->Shanghai Connect daily quota used -0.8%, Shanghai->HK
daily
quota used 3.3%
    * FTSE China A50 +0.1%

    SHANGHAI, Aug 20(Reuters) - China and Hong Kong stocks
barely moved on Tuesday as investors took a breather and
pondered the extent and impact of Beijing's interest rate
reform.
    ** The CSI300 index  .CSI300  was unchanged at 3,790.92 at
the end of the morning session, while the Shanghai Composite
Index  .SSEC  gained 0.1% to 2,885.17. 
    ** The Hang Seng index  .HSI  was unchanged at 26,294.08,
while the Hong Kong China Enterprises Index  .HSCE  gained 0.5%
to 10,160.12.
    ** China's new lending reference rate was set slightly lower
on Tuesday in the first publication of the benchmark since the
central bank announced interest rate reforms designed to lower
corporate borrowing costs.  urn:newsml:reuters.com:*:nL4N25G0IC 
    ** The People's Bank of China (PBOC) on Saturday said the
Loan Prime Rate (LPR) would become the lending benchmark for
banks when setting rates for new loans to households and
businesses, instead of the central bank's existing benchmark
one-year lending rate.
    ** Analysts and investors say the reforms are an official
attempt to lower financing costs in the world's second largest
economy, which has faced continued pressure from weakening
demand at home and an extended trade war with the United States.
    ** "Overall, it is a modest cut in line with our
expectations, though in the future, it's expected the LPR could
go further lower, as China has its own target of steering
funding costs lower," said Shen Xinfeng, analyst with Northeast
Securities. 
    ** "The addition of the eight small banks, whose strength
might not be the same as another 10 big lenders in terms of
funding costs, could have certain impact in the formation of the
new LPR," she said.
    ** Eyes were also on Chinese tech giant Huawei caught in the
crossfire of a protracted Sino-U.S. trade war. 
    ** The United States will extend a reprieve that permits
China's Huawei Technologies  HWT.UL  to buy components from U.S.
companies to supply existing customers, the Commerce Department
said on Monday, but it also moved to add more than 40 of
Huawei's units to its economic blacklist.  urn:newsml:reuters.com:*:nL2N25F071  
    ** The tech heavy start-up board index  .CNT  in Shenzhen
slipped 0.3% following the Huawei news.   
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.42% while Japan's Nikkei index
 .N225  was up 0.48%.
    ** The yuan  CNY=CFXS  was quoted at 7.0675 per U.S. dollar,
0.24% weaker than the previous close of 7.0509. 
    ** The largest percentage gainers in the main Shanghai
Composite index were Gansu Dunhuang Seed Group Co Ltd
 600354.SS , up 10.06%, followed by Veken Technology Co Ltd
 600152.SS , gaining 10.04% and North China Pharmaceutical Co
Ltd  600812.SS , up by 10%.
    ** The largest percentage losers in the Shanghai index were
Shandong Pharmaceutical Glass Co Ltd  600529.SS , down 9.98%,
followed by Qingdao Tianhua Institute of Chemistry Engineering
Co Ltd  600579.SS , losing 5.96% and Asia Cuanon Technology
Shanghai Co Ltd  603378.SS , down by 5.62%.
    ** The top gainers among H-shares were CSPC Pharmaceutical
Group Ltd  1093.HK , up 10.8%, followed by ANTA Sports Products
Ltd  2020.HK , gaining 4.79% and Sinopharm Group Co Ltd
 1099.HK , up by 3.31%.
    ** The three biggest H-shares percentage decliners were
Dongfeng Motor Group Co Ltd  0489.HK , which has fallen 1.30%,
Country Garden Holdings Co Ltd  2007.HK , which has lost 1.3%
and Longfor Group Holdings Ltd  0960.HK , down by 1.2%.
    ** As of 04:15 GMT, China's A-shares were trading at a
premium of 30.10% over the Hong Kong-listed H-shares.

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China stock market graphics suite     http://reut.rs/1NfkoGl
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 (Reporting by Luoyan Liu and John Ruwitch)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))