China stocks steady, Hong Kong shares rebound as yuan stabilises
* CSI300 +0.2 pct; SSEC flat; HSI +2.4 pct
* China investors slash leveraged stock purchases
* Stabilising yuan benefits China stocks - analyst
SHANGHAI, Jan 13 (Reuters) - China stocks held steady while Hong Kong shares rebounded more than 2 percent early on Wednesday, as fears of a sustained yuan depreciation eased after Beijing's efforts to stabilise the currency.
The chance of foreign speculators further knocking down the yuan in a tug of war with the People's Bank of China (PBOC) is slim because the central bank still has ample foreign currency reserves and China's economy is not doomed, said Yang Hai, analyst at Kaiyuan Securities.
"It's not wise to fight PBOC," Yang said. "A stabilising yuan would help recover confidence in Chinese stocks."
The central bank has held the yuan's daily midpoint steady in the past few days and used state banks to soak up liquidity in Hong Kong which has made it prohibitively expensive to bet against the yuan offshore.
The CSI300 index rose 0.2 percent, to 3,221.15 points at the end of the morning session, while the Shanghai Composite Index was unchanged at 3,022.47 points.
Analysts pointed out, however, that trading volume was continuing to wane, signalling that many investors were standing on the sidelines and putting money elsewhere. Continuación...