December 20, 2018 / 4:30 AM / 6 months ago

China, Hong Kong stocks down after Fed, new PBOC lending tool

* SSEC -0.8 pct, CSI300 -1.0 pct, HSI -1.1 pct

* HK->Shanghai Connect daily quota used -0.7 pct, Shanghai->HK daily quota used 0.6 pct

* FTSE China A50 -1.5 pct, BNY Mellon ADR China Select Index -2.1 pct

SHANGHAI, Dec 20 (Reuters) - China and Hong Kong stocks fell on Thursday morning after the country’s central bank announced a new targeted lending tool, hours after the U.S. Federal Reserve raised rates and largely maintained its outlook for more hikes next year.

** The CSI300 index fell 1.0 percent, to 3,061.41 points at the end of the morning session, while the Shanghai Composite Index lost 0.8 percent, to 2,528.73 points.

** The Hang Seng index dropped 1.1 percent, to 25,574.32 points, while the Hong Kong China Enterprises Index lost 1.2 percent, to 10,069.41 points.

** The Fed raised key overnight lending rate rates by 25 basis points as expected to a range of 2.25 percent to 2.50 percent. It kept the core of its plan to tighten monetary policy further, despite rising uncertainty about global economic growth.

** On Wednesday, China’s central bank rolled out a policy tool to spur lending to small and private firms, which some analysts said was effectively a targeted rate cut. The Targeted Medium-term Lending Facility (TMLF) is the PBOC’s latest step to support a slowing economy amid a trade dispute with the United States.

** Some analysts expressed doubt about the effectiveness of the measure.

** “The (TMLF) could boost market sentiment, but is far from enough to stop the ongoing growth slowdown. Having slowed for the past four quarters, Chinese economy is only halfway through the current down-cycle,” Macquarie economists Larry Hu and Irene Wu said in a note. “We expect policy makers to ease shadow lending in 1H19 to boost infrastructure spending, then ease property measures significantly in 2H19.”

** Chinese banking shares slid after the measure, leading the broader retreat in the market.

** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.04 percent while Japan’s Nikkei index was down 2.52 percent.

** The yuan was quoted at 6.9075 per U.S. dollar, 0.22 percent weaker than the previous close of 6.892.

** The largest percentage gainers in the main Shanghai Composite index were Nanjing Textiles Import & Export Corp Ltd , up 9.99 percent, followed by Wuhan East Lake High Technology Group Co Ltd, gaining 9.98 percent and Jiangsu SOPO Chemical Co Ltd, up by 9.95 percent.

** The largest percentage losses in the Shanghai index were Zhejiang Jiahua Energy Chemical Industry Co Ltd, down 10.01 percent, followed by Dalian Sunasia Tourism Holding Co Ltd, losing 9.99 percent and Fujian Raynen Technology Co Ltd, down by 9.87 percent.

** So far this year, the Shanghai stock index is down 22.91 percent, while China’s H-share index is down 12.9 percent. Shanghai stocks have declined 1.49 percent this month.

** The top gainers among H-shares were China Vanke Co Ltd , up 1.1 percent, followed by Guangzhou Automobile Group Co Ltd, gaining 0.93 percent and CGN Power Co Ltd, up by 0.53 percent.

** The three biggest H-shares percentage decliners were CSPC Pharmaceutical Group Ltd, which has fallen 4.92 percent, Anhui Conch Cement Co Ltd, which has lost 4.0 percent and GF Securities Co Ltd, down by 3.8 percent.

** About 6.56 billion shares have traded so far on the Shanghai exchange, roughly 40.7 percent of the market’s 30-day moving average of 16.11 billion shares a day. The volume traded was 10.77 billion as of the last full trading day.

** As of 04:08 GMT, China’s A-shares were trading at a premium of 18.14 percent over the Hong Kong-listed H-shares.

Reporting by Luoyan Liu and John Ruwitch; Editing by Sunil Nair

Nuestros Estándares:Los principios Thomson Reuters
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