June 25, 2018 / 4:31 AM / 4 months ago

China stocks inch up after cbank's reserve-ratio cut; HK down

* SSEC 0.2 pct, CSI300 0.1 pct, HSI -0.4 pct

* HK->Shanghai Connect daily quota used -2.8 pct, Shanghai->HK daily quota used 1.2 pct

* FTSE China A50 -0.2 pct, BNY Mellon ADR China Select Index +0.7 pct

SHANGHAI, June 25 (Reuters) - China stocks edged higher on Monday, though gains were capped as an expected reserve requirement ratio (RRR) cut, freeing up for lending some capital that commercial banks have to hold as reserves, was largely offset by lingering trade fears. ** The CSI300 index rose 0.1 percent to 3,612.80 points at the end of the morning session, while the Shanghai Composite Index gained 0.2 percent to 2,894.74 points. ** The U.S. Treasury Department is drafting curbs that would block firms with at least 25 percent Chinese ownership from buying U.S. companies with “industrially significant technology,” a government official briefed on the matter said on Sunday. ** Policymakers in China moved fast to temper any potential economic drag from the trade dispute with the United States, with China’s central bank on Sunday saying it would cut the amount of cash that some banks must hold as reserves by 50 basis points. ** The reduction in reserves, the third by the central bank this year, had been widely anticipated by investors and is aimed to accelerate the pace of debt-for-equity swaps and spur lending to smaller firms. ** “The targeted RRR cut is a structural policy for certain key or backward sectors rather than an across-the-board easing, though there is still room for further RRR cuts within the year,” Shenwan Hongyuan Securities wrote in note. ** In Hong Kong, the Hang Seng index dropped 0.4 percent, to 29,227.49 points, while the Hong Kong China Enterprises Index lost 0.5 percent, to 11,287.48. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.55 percent while Japan’s Nikkei index was down 0.41 percent . ** The yuan was quoted at 6.531 per U.S. dollar, 0.55 percent weaker than the previous close of 6.495. ** The largest percentage gainers in the main Shanghai Composite index were Shandong Daye Co Ltd, up 10.03 percent, followed by Beijing Tricolor Technology Co Ltd gaining 10.01 percent and CRED Holding Co Ltd up by 10 percent. ** The largest percentage losses in the Shanghai index were in Yiwu Huading Nylon Co Ltd, down 10.02 percent, followed by Nanjing Kangni Mechanical & Electrical Co Ltd losing 10.01 percent and Nanjing Xinjiekou Department Store Co Ltd down by 9.98 percent. ** The top gainers among H-shares were CNOOC Ltd up 3.89 percent, followed by PetroChina Co Ltd gaining 1.4 percent and Shenzhou International Group Holdings Ltd up by 1.14 percent. ** The three biggest H-shares percentage decliners were Air China Ltd, which has fallen 5.77 percent, China Gas Holdings Ltd, which has lost 2.9 percent, and New China Life Insurance Co Ltd down by 2.5 percent. ** About 6.87 billion shares have traded so far on the Shanghai exchange, roughly 50.9 percent of the market’s 30-day moving average of 13.49 billion shares a day. The volume traded was 12.61 billion as of the last full trading day. ** As of 04:01 GMT, China’s A-shares were trading at a premium of 20.43 percent over the Hong Kong-listed H-shares. ** The Shanghai stock index is below its 50-day moving average and below its 200-day moving average.

Reporting by Luoyan Liu and John Ruwitch; Editing by Amrutha Gayathri

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