7 de noviembre de 2014 / 4:58 / en 3 años

China shares rise on c.bank liquidity support, HK follows

* HSI +0.1 pct, H-shares +1.0 pct, CSI300 +0.8 pct

* Mainland, HK brokers post solid gains

* Investor confidence up on c.bank injection

SHANGHAI, Nov 7 (Reuters) - China shares rose on Friday, buoyed by strength in brokerages as investors regained confidence after the Chinese central bank pumped liquidity into the financial system to help the economy.

The Shanghai Composite Index rose 0.6 percent to a 20-month high of 2,440.3 points by midday, while the CSI300 of the leading Shanghai and Shenzhen A-share listings gained 0.8 percent, to touch its highest since early June last year.

For the week, the mainland indexes are set to climb 0.8 percent and 0.7 percent, respectively, which would mark a second straight week of gains.

The central bank said on Thursday that it had pumped 769.5 billion yuan ($125.8 billion) worth of three-month loans into banks via a “medium-term lending facility” (MLF) to keep interest rates low.

Analysts said the move by the central bank could help to boost stock investors’ confidence as well.

“I’ve seen investors are confident to buy into those low-valuation heavyweight stocks,” said Du Changchun, analyst at Northeast Securities in Shanghai, adding that strong performance by blue chips would provide key support for the index.

Brokerage stocks bolstered the main indexes, with Huatai Securities Co Ltd rising 8.3 percent, while Industrial Securities Co Ltd hit its 10 percent daily limit.

Haitong Securities Co Ltd and CITIC Securities Co Ltd, the country’s top two brokerage firms, rose 5.3 percent and 5.5 percent, respectively.

Other financials also outperformed, with the CSI300 financials sub-index firming 2 percent to hit its best level since Sept. 2013. The SSEC financials sub-index rose 1.7 percent.

China Life Insurance Co Ltd and China Citic Bank Corp Ltd both gained 2 percent.


Hong Kong shares reversed early losses by midday, as a strong brokerage sector helped temper selling pressure.

The Hang Seng Index was up 0.1 percent at 23,682.6 points. The China Enterprises Index of the top Chinese listings in Hong Kong gained 1.0 percent.

For the week, the two indexes were down 1.3 percent and 0.8 percent, respectively.

Analyst said investor were taking profits from the market after previous rallies.

Linus Yip, chief strategist at First Shanghai securities in Hong Kong, said the current reporting season posed no surprise as most blue chip companies had reported earnings within market expectations.

Brokerage shares rose, led by CITIC Securities which announced solid October net profit on Thursday. Shares of CITIC Securities were up 5.3 percent and Haitong International rose 4.1 percent.

The information technology sector was the biggest loser. Lenovo extended losses from Thursday despite reporting a 19 percent jump in net income in the second fiscal quarter, but revenue fell short of analyst expectations.

Tencent Holdings Ltd shed 0.3 percent after the company signed a commitment to “self-manage” comments on its website together with 28 Chinese video portals.

Ping An Insurance Group, China’s second largest insurer, halted trading on Friday morning.

$1 = 6.1156 Chinese yuan Reporting by Shanghai Newroom; Editing by Jacqueline Wong

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