China stocks head for 6th straight day of gains as poor data fan policy hopes
* CSI300 +0.4 pct; SSEC +0.2 pct; HSI +0.2 pct;
* Ugly economic data reinforces expectations of monetary easing
* SAIC announcement fans hopes of acceleration in SOE reforms
SHANGHAI, Feb 16 (Reuters) - China stocks are heading for their sixth straight session of gains in thin trading on Monday, as expectations of further government stimulus were reinforced by ugly economic data ahead of the Lunar New Year holiday.
The market also drew support from liquidity unlocked from last week's initial public offering rush, as well as signs of accelerating reforms in state-owned enterprises (SOEs) after government-owned automaker SAIC Motor Corp Ltd unveiled changes in share ownership.
Data published late on Friday showed that China's January growth in broad money support slumped to a record low of 10.8 percent, strengthening hopes that further loosening in monetary policies is imminent.
Echoing such market expectations, policy insiders told Reuters over the weekend that Chinese authorities will cut interest rates, increase liquidity and tolerate some currency weakness to ensure the economy grows around 7 percent this year, so as to push on with reforms.
"The government doesn't have many cards left in its sleeves, so the uglier the economic data, the more likely policy makers will play these cards," said Hou Yingmin, analyst at brokerage Shanghai Aj Corp.
"The recent rebound has helped create a joyful atmosphere ahead of the Chinese New Year, but don't forget the indexes are still in a consolidation period so a correction could happen at any time." Continuación...