February 27, 2019 / 7:17 AM / 3 months ago

Shanghai stocks end higher after Fed chief comments; blue chips fall

* Shanghai stocks up 0.4 pct, blue-chip index down 0.2 pct

* Gains in Shanghai stocks led by Shanghai Stock Exchange and losses by Shanghai Stock Exchange

* China’s A-shares are at a 22.94 percent premium over H-shares

SHANGHAI, Feb 27 (Reuters) - Shanghai stocks ended up on Wednesday, after Federal Reserve Chairman Jerome Powell reinforced the U.S. central bank’s recent shift towards a more “patient” approach on policy in the face of a slowing economy.

** The blue-chip CSI300 index fell 0.2 percent, to 3,678.39, while the Shanghai Composite Index rose 0.4 percent to 2,953.82 points.

** The Fed is in “no rush to make a judgment” about further changes to interest rates, Powell told U.S. lawmakers on Tuesday as he spelled out the central bank’s approach to an economy that is likely slowing.

** In two hours of testimony to the Senate Banking Committee, Powell elaborated on the “conflicting signals” the Fed has tried to decipher in recent weeks, including disappointing data on retail sales and other aspects of the economy that contrast with steady hiring, wage growth, and ongoing low unemployment.

** Stocks also got some support after the PBOC said it will encourage financial market innovation to boost the economy.

** However, volatility increased as the trading turnover in Shanghai and Shenzhen continued to be more than 1 trillion yuan ($149.48 billion) for the third session.

** “Shareholders of listed firms step up their stake cuts as the broad rally continues, which would have dampened the sentiment for the A-share investors,” Zhao Wei, chief market analyst at Founder Securities, wrote in report.

** There would be technical consolidation before the benchmark Shanghai index moves past the 3000-point-level, a psychologically key level seen by many participants.

** Trust-related firms surged after reports that Beijing will lower the threshold for the investment in trust products, adding to signs that Beijing is loosening financial regulation to boost the real economy.

** The CSI financials index has gained over 20 percent so far this year, as Beijing continues to open up its financial markets and deepen reforms in the sector to help prop up the cooling economy.

** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.15 percent, while Japan’s Nikkei index closed up 0.5 percent.

** At 07:04 GMT, the yuan was quoted at 6.6918 per U.S. dollar, 0.12 percent firmer than the previous close of 6.6999.

** The largest percentage gainers in the main Shanghai Composite index were Sichuan Hongda Co Ltd, up 10.13 percent, followed by Maoye Commercial Co Ltd, gaining 10.1 percent and Zhejiang Tiancheng Controls Co Ltd , up by 10.06 percent.

** The largest percentage losses in the Shanghai index were Eastern Gold Jade Co Ltd down 10.07 percent, followed by Changshu Fengfan Power Equipment Co Ltd losing 10.03 percent and Pengqi Technology Development Co Ltd down by 10.02 percent.

** So far this year, the Shanghai stock index is up 18.4 percent and the CSI300 has risen 22.2 percent , while China’s H-share index listed in Hong Kong is up 13.3 percent. Shanghai stocks have risen 14.29 percent this month.

** About 47.50 billion shares were traded on the Shanghai exchange, roughly 228.2 percent of the market’s 30-day moving average of 20.81 billion shares a day. The volume in the previous trading session was 56.56 billion.

** As of 07:05 GMT, China’s A-shares were trading at a premium of 22.94 percent over the Hong Kong-listed H-shares. ($1 = 6.6897 Chinese yuan renminbi) (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)

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