China shares eke out mild gains amid cautious trade optimism

Xinjiang La Chapelle Fashion Co

26/11/2019 07:39

* CSI300 +0.35%, SSEC barely higher
    * Strong northbound flows ahead of MSCI weightage increase
    * U.S., China trade negotiators hold phone call

    SHANGHAI, Nov 26 (Reuters) - Chinese blue-chip shares rose
on Tuesday and the Shanghai Composite Index inched higher on a
rebound in high-tech firms and as renewed optimism over
U.S.-China trade deal offered a mild boost.
    
** At the close, the blue-chip CSI300 index  .CSI300  was up
0.35%, with its financial sector sub-index  .CSI300FS  lower by
0.27%, the consumer staples sector  .CSI000912  up 0.94%, the
real estate index  .CSI000952  down 0.16% and the healthcare
sub-index  .CSI300HC  up 1.06%. The Shanghai Composite index
 .SSEC  edged up 0.03% to 2,907.06.
 
** Top trade negotiators from China and the United States held a
phone call on Tuesday morning, China's Commerce Ministry said,
as the two sides try to hammer out a preliminary "phase one"
deal in a trade war that has dragged on for 16 months.
 urn:newsml:reuters.com:*:nL4N2860SB 
 
** The CSI IT sub-index  .CSIINT  gained 1.28%, rebounding from
two days of losses.
 
** The smaller Shenzhen index  .SZSC  ended up 0.32% and the
start-up board ChiNext Composite index  .CNT  was higher by
1.042%.
 
** Earlier this month, global index provider MSCI said it would
increase the weightage of Chinese A-shares in its emerging
markets index to 4.1% from 2.55%, effective at the market open
on Nov. 27.  urn:newsml:reuters.com:*:nL2N27N26V
 
** Refinitiv data showed robust northbound inflows of more than
20 billion yuan ($2.84 billion) through the Hong Kong-Shanghai
and Hong Kong-Shenzhen Stock Connect programmes on Tuesday,
though analysts said the market impact of the MSCI weightage
increase was limited.
 
** China needs to resolve outstanding financial risks, and must
counter risks from "abnormal" market fluctuations that stem from
external shocks, said the central bank on Monday, as Beijing
prioritises financial stability amid increasing challenges.
nL4N2852UO]    
** China will also take further steps to curb property bubbles,
stabilising housing as well as land prices to fend off financial
risks, the Communist Party chief of the central bank said.
 urn:newsml:reuters.com:*:nB9N27V00M
 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.08%, while Japan's Nikkei index
 .N225  closed up 0.35%.
 
** At 07:13 GMT, the yuan  CNY=CFXS  was quoted at 7.0323 per
U.S. dollar, 0.05% firmer than the previous close of 7.0355. 
 
** The largest percentage gainers in the main Shanghai Composite
index were Sichuan Golden Summit Group Joint Stock Co Ltd
 600678.SS , up 10.08%, followed by Shanghai La Chapelle Fashion
Co Ltd  603157.SS , gaining 10.06%, and Guirenniao Co Ltd
 603555.SS , up by 10.04%.
 
** The largest percentage losers in the Shanghai index were
Beijing Cuiwei Tower Co Ltd  603123.SS , down 10.02%, followed
by Anhui Gourgen Traffic Construction Co Ltd  603815.SS , losing
10%, and Beijing Qianjing Landscape Co Ltd  603778.SS , down by
10%.
 
** So far this year, the Shanghai stock index is up 16.6% and
the CSI300 has risen 29.3%, while China's H-share index listed
in Hong Kong is up 5%. Shanghai stocks have declined 0.75% this
month. 
 
($1 = 7.0389 Chinese yuan)

 (Reporting by Andrew Galbraith; Editing by Subhranshu Sahu)
 ((Andrew.Galbraith@tr.com; +86 21 2083 0079; Reuters Messaging:
andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))