* CIS300 +1.9 pct; SSEC +1.8 pct; HSI +0.5 pct
* Premier’s remarks boosts investors hopes on easing policies
* Shares of FAW units fall on news that Chairman under probe
SHANGHAI, March 16 (Reuters) - Chinese shares rose nearly 2 percent on Monday morning, reaching five-year-highs, after Premier Li Keqiang said that Beijing had plenty of scope to adjust policies in order to boost the world’s second largest economy.
Li told a news conference in Beijing on Sunday that China’s room for policy manoeuvre is “relatively big”, and could choose from “comparatively many” policy tools.
He also assured his audience that policymakers would prop up the economy if growth was at risk of breaching a “lower limit”, or hurt employment and income gains.
“The premier’s remarks are really encouraging,” said Tian Weidong, analyst at Kaiyuan Securities in Xi‘an in northwest China.
“Investors have nothing to fear now because the message is that if economic growth continues to slow, there will be more stimulus measures.”
The CSI300 index rose 1.9 percent, to 3,687.95 points at the end of the morning session, while the Shanghai Composite Index gained 1.8 percent to 3,434.31 points, the highest level since August 2009.
Hong Kong stocks also rose, with the Hang Seng index up 0.5 percent, and the Hong Kong China Enterprises Index rising 0.7 percent.
Shenzhen’s ChiNext, the Nasdaq-style board for high-growth start-ups, jumped 3 percent to a record high, while Internet-related stocks were also up strongly, as Li also voiced support for start-up companies and use of Internet to bolster the economy.
“If you look at leading sectors today, computers, telecommunications, media .. They all rose sharply,” said Zhou Lin, analyst at Huatai Securities.
“The premier’s remarks rekindled investors’ interest in Internet stocks.”
Zhou said that bubbles are starting to form on ChiNext, with stocks listed on the board trading at more than 80 times companies’ earnings, but it was hard to predict when they would burst.
China’s green stocks, which has been rising sharply recently on expectations of more government measures to clean up the environment, continued strong upward momentum on Monday.
Li said that authorities will toughen their fight against pollution to clean up air, land and waterways by enforcing a new environmental law, which is “not a cotton swab, but the strongest trump card.”
The listed units of Chinese automaker FAW Group Corp, including FAW Car Co Ltd, FAW Xiali and Faway Auto fell, on news that FAW Group’s Chairman has been put under investigation for “violating party discipline.” (Samuel Shen and Kazunori Takada; editing by Simon Cameron-Moore)