China stocks rally on stimulus hopes, trade talks; Hong Kong up

Wharf Real Estate Investment

05/09/2019 05:46

* SSEC 1.6%, CSI300 1.6%, HSI 0.4%
    * HK->Shanghai Connect daily quota used 9.5%, Shanghai->HK
daily
quota used 3.4%
    * FTSE China A50 +1.4% 

    SHANGHAI, Sept 5 (Reuters) - China stocks rallied on
Thursday, boosted by hopes Beijing will cut a key ratio to shore
up the economy, while another round of talks between China and
the U.S. in October aided sentiment.  
    ** The CSI300 index  .CSI300  rose 1.6% to 3,948.99 at the
end of the morning session, while the Shanghai Composite Index
 .SSEC  gained 1.6% to 3,003.44. 
    ** China will implement both broad and targeted cuts in the
reserve requirement ratio (RRR) for banks "in a timely manner,"
China's cabinet said in a meeting on Wednesday, an indication
that a cut in the key ratio aimed at boosting lending could be
imminent.  urn:newsml:reuters.com:*:nL3N25V2UC 
    ** "There is room for cutting RRR and it's necessary to do
so," said Wen Bin, economist at Minsheng Bank. "China's
investment and consumption face downward pressure. It's
necessary to cut RRR for all banks to support the real economy."
    ** Meanwhile, China and the United States agreed to hold
high-level trade talks in early October in Washington, China's
commerce ministry said on Thursday, amid fears that an
escalating trade war could trigger a global economic recession.
 urn:newsml:reuters.com:*:nL3N25W0JF 
    ** Many of China's analysts believe the negative impact on
the A-share market from the Sino-U.S. trade war would marginally
decrease with time, as Beijing rolls out more measures to boost
economy at a time when A-shares' valuations are reasonable and
more international money flows in as the country further opens
up its capital markets. 
    ** JPMorgan will add Chinese government bonds to its
widely-tracked emerging market local currency bond index from
February 2020 — a decision expected to suck billions into the
world's third-largest bond market.  urn:newsml:reuters.com:*:nL5N25V3F4 
    ** Major index providers MSCI and FTSE Russell will announce
further increased inclusion factors for the A-share market later
this year.  
    ** In Hong Kong, gains were subdued following a surge the
previous session. 
    ** The Hang Seng index  .HSI  added 0.4% to 26,624.25, while
the Hong Kong China Enterprises Index  .HSCE  gained 1.4% to
10,431.31.
    ** Hong Kong leader Carrie Lam said on Thursday she hopes
the formal withdrawal of a controversial extradition bill and
other measures will help solve the city's political crisis.
 urn:newsml:reuters.com:*:nP8N23M016    
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 1%, while Japan's Nikkei index
 .N225  was up 2.23%.
    ** The yuan  CNY=CFXS  was quoted at 7.1337 per U.S. dollar,
0.16% firmer than the previous close of 7.145. 
    ** The largest percentage gainers on the main Shanghai
Composite index were Xishui Strong Year Co Ltd Inner Mongolia
 600291.SS , up 10.06%, followed by Hefei Metalforming
Intelligent Manufacturing Co Ltd  603011.SS , gaining 10.02% and
Fujian Apex Software Co Ltd  603383.SS , up by 10.01%.
    ** The largest percentage losers on the Shanghai index were
Beijing Xinwei Technology Group Co Ltd  600485.SS , down 5.05%,
followed by FUREN Group Pharmaceutical Co Ltd  600781.SS ,
losing 5.01%, and Guangzhou Kingmed Diagnostics Group Co Ltd
 603882.SS , down by 3.3%.
    ** The top gainers among H-shares were Haitong Securities Co
Ltd  6837.HK , up 6.43%, followed by CITIC Securities Co Ltd
 6030.HK , gaining 4.99% and Huatai Securities Co Ltd  6886.HK ,
up by 4.97%.
    ** The three biggest H-shares percentage decliners were
Guangdong Investment Ltd  0270.HK , down 1.11%, ENN Energy
Holdings Ltd  2688.HK , which has lost 0.8% and China Resources
Beer Holdings Co Ltd  0291.HK , which declined by 0.8%.
    ** As of 04:16 GMT, China's A-shares were trading at a
premium of 28.31% 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; editing by
Uttaresh.V)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))