Hong Kong stocks close at 5-month high

Wharf Real Estate Investment

30/12/2019 08:40

* HK->Shanghai Connect daily quota used 4.8%, Shanghai->HK
daily
quota used 2%
    * HSI +0.3%, HSCE +0.3%, CSI300 +1.5%
    * FTSE China A50 +1.4%

    Dec 30 (Reuters) - Hong Kong shares tracked strength on the
mainland to close at an over five-month high on Monday, after
China's central bank said it will switch the benchmark for
floating-rate loans, a move that could help lower funding costs.
   
    ** The Hang Seng index  .HSI  closed up 0.3% at 28,319.39,
its highest since July 26, while the China Enterprises Index
 .HSCE  gained 0.3% to 11,225.31.   
    ** China's central bank will use the loan prime rate (LPR)
as a new benchmark for pricing existing floating-rate loans, in
a step that analysts say could also underpin economic growth.
 urn:newsml:reuters.com:*:nL4N292017 
    ** "The purpose of the step is to make interest rates more
market-driven and help lower financing costs," said Wen Bin, an
economist at Minsheng Bank in Beijing. 
    ** On the trade front, China's commerce ministry has
"proactively dealt with" trade frictions with the United States
this year, it said on Sunday after an annual work conference.
 urn:newsml:reuters.com:*:nL4N29301G  
    ** Hong Kong will end 2019 with multiple protests planned
for New Year's Eve and New Year's Day, aimed at disrupting
festivities and shopping in the Asian financial hub, which has
seen a rise in clashes between police and protesters since
Christmas.  urn:newsml:reuters.com:*:nL4N2940NW  
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.07%, while Japan's Nikkei index
 .N225  closed down 0.76%.
    ** The yuan  CNY=CFXS  was quoted at 6.9859 per U.S. dollar
by 0814 GMT, 0.14% firmer than the previous close of 6.9956. 
    ** At close, China's A-shares were trading at a premium of
26.31% over Hong Kong-listed H-shares.

 (Reporting by the Shanghai Newsroom; editing by Uttaresh.V)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))