China, Hong Kong stocks rise in early trade
SHANGHAI, Sept 18 (Reuters) - Stocks in China and Hong Kong rose on Friday as the U.S. Federal Reserve held off from raising interest rates, citing in part growing global uncertainties.
Since Hong Kong's currency is pegged to the dollar, stocks listed in the city are far more sensitive to U.S. policy rate changes than those mainland China, which are driven by domestic factors.
But the absence of any spike in global market volatility in the wake of the Fed's decision soothed investors in general.
The CSI300 index rose 0.7 percent to 3,260.81 points by 0201 GMT, while the Shanghai Composite Index gained 0.4 percent to 3,099.54 points.
China CSI300 stock index futures for September fell 0.5 percent to 3,267.6, 6.79 points above the current value of the underlying index.
Hong Kong's Hang Seng index was up 0.6 percent at 21,981.89.
The impact of the U.S. rate decision was "moderate as it (a rate increase) was perceived as a 50/50 chance and investors are assuming that the hike will occur in December," wrote Gerry Alfonso, director at Shenwan Hongyuan Securities Co.
Reactions to regulators' overnight remarks on the crackdown of illegal margin financing - a source of lingering concern among investors - were also mixed.
The China Securities Regulatory Commission (CSRC) vowed late on Thursday to continue its clean-up of unregulated margin lending business, but softened its attitude somehow by saying brokerages shouldn't take an indiscriminate approach. (Samuel Shen and Pete Sweeney)
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