China stocks drop as trade slump dents sentiment; HK falls

Wharf Real Estate Investment

14/01/2019 04:55

* SSEC -0.6 pct, CSI300 -0.8 pct, HSI -1.4 pct
    * Exports fall most in two years, imports contract
    * China foreign exchange regulator doubles QFII quota

    SHANGHAI, Jan 14 (Reuters) - China shares dropped on Monday
after a shock contraction in Chinese exports reflected a
slowdown in the world's second-largest economy, but the
government's tax-cut plans to boost growth curbed further
declines.
    
** At the midday break, the Shanghai Composite index  .SSEC  was
down 0.56 percent at 2,539.59 points. 
 
** China's blue-chip CSI300 index  .CSI300  was down 0.77
percent, with its financial sector sub-index  .CSI300FS 
dropping 0.68 percent and the healthcare sub-index slipping 2.15
percent.
 
** Chinese H-shares listed in Hong Kong  .HSCE  dropped 1.49
percent to 10,299.09 points, while the Hang Seng Index  .HSI 
was down 1.38 percent at 26,299.19.    
 
** China's December exports unexpectedly fell the most in two
years and imports contracted, official data showed on Monday,
pointing to further weakening in the world's second-largest
economy and soft global demand.  urn:newsml:reuters.com:*:nL3N1ZE1RI
 
** "We believe trade growth next year will slow significantly on
huge uncertainty and high base," analysts at Citi said in a
note. "Despite increased optimism after (the) Trump-Xi summit in
Argentina, significant uncertainty remains as to whether there
could be a "deal" after March 1," the note added.
 
** Car makers in China are bracing for zero to tepid growth in
sales this year, after a tough 2018 when the world's top auto
market probably contracted for the first time in two decades, as
slowing economic growth drags on demand. Automakers are down,
with Warren Buffett-backed electric car maker BYD Co Ltd
 002594.SZ   1211.HK  down 2.02 percent in Shenzhen and down
4.84 percent in Hong Kong. Geely Automobile Holdings Ltd
 0175.HK  is down 2.88 percent.  urn:newsml:reuters.com:*:nL8N1ZB0WM   
 
** Chinese banking shares dropped after the banking regulator
said on Friday that commercial banks' non-performing loan (NPL)
ratio hit a 10-year high of 1.89 percent at the end of 2018 amid
slowing economic growth. The CSI China mainland banks index
 .CSI000947  is 0.4 percent lower.  urn:newsml:reuters.com:*:nL3N1ZB2P6
 
** China plans to reduce restrictions on foreign investment and
address difficulties facing foreign companies investing in the
country, the country's commerce minister said on the weekend.
The human resources ministry said it would roll out measures to
maintain stable employment.  urn:newsml:reuters.com:*:nL3N1ZD00Z urn:newsml:reuters.com:*:nL3N1ZD05M
 
** China's foreign exchange regulator said it would double the
quota for the Qualified Foreign Institutional Investor (QFII)
programme to meet demand from overseas investors. The inclusion
of Chinese A-shares in global stock indexes could see foreign
inflows into China's stock market double in 2019, the vice
chairman of the China Securities Regulatory Commission said.
 urn:newsml:reuters.com:*:nB9N1YV018 urn:newsml:reuters.com:*:nL3N1ZC028
 
** Premier Li Keqiang said China's plans for tax cuts targeting
smaller companies will help to support employment and economic
stability, and will expand the country's tax base over the long
term.  urn:newsml:reuters.com:*:nL3N1ZC031
 
** The smaller Shenzhen index  .SZSC  was down 0.7 percent and
the start-up board ChiNext Composite index  .CHINEXTP  was
weaker by 1.05 percent.
 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  slipped 0.96 percent, while Japan's Nikkei index
 .N225  rose 0.97 percent.
 
** The yuan  CNY=CFXS  was quoted at 6.7558 per U.S. dollar,
0.16 percent firmer than the previous close of 6.7666. 
 
** The largest percentage gainers in the main Shanghai Composite
index were Xining Special Steel Co Ltd  600117.SS , which rose
10.14 percent, followed by Yunnan Coal & Energy Co Ltd
 600792.SS , which gained 10.1 percent and Ningxia Jiaze
Renewables Corp Ltd  601619.SS , which climbed 10.09 percent.
 
** The largest percentage losses in the Shanghai index were
Zhongchang Big Data Corp Ltd  600242.SS , which slipped 9.99
percent, followed by Changshu Fengfan Power Equipment Co Ltd
 601700.SS , which lost 9.96 percent and Beijing Tiantan
Biological Products Corp Ltd  600161.SS , which fell 9.31
percent.
 
** So far this year, the Shanghai stock index rose 2.4 percent,
while China's H-share index climbed 3.3 percent. Shanghai stocks
rose 2.4 percent so far this month. 
 
** The top gainers among H-shares were China Merchants Bank Co
Ltd  3968.HK , up 0.83 percent, followed by Anhui Conch Cement
Co Ltd  0914.HK , gaining 0.66 percent and Guangdong Investment
Ltd  0270.HK , up by 0.53 percent.
 
** The three biggest H-shares percentage decliners were BYD Co
Ltd  1211.HK , down 4.84 percent, Huaneng Power International
Inc  0902.HK , down 4.3 percent and Air China Ltd  0753.HK ,
which is 3.6 percent lower.
 
** In Hong Kong, the sub-index of the Hang Seng index tracking
energy shares  .HSCIE  declined 2 percent, while the IT sector
 .HSCIIT  fell 2.3 percent. The top gainer on the Hang Seng was
Wharf Real Estate Investment Company Ltd  1997.HK , up 0.52
percent, while the biggest loser was CNOOC Ltd  0883.HK , which
was down 3.43 percent.


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