January 15, 2019 / 4:25 AM / 6 months ago

China, HK stocks rise as Beijing signals stimulus after dismal data

* SSEC 1.0 pct, CSI300 1.5 pct, HSI 1.7 pct

* HK->Shanghai Connect daily quota used 3 pct, Shanghai->HK daily quota used 0.3 pct

* FTSE China A50 +1.7 pct, BNY Mellon ADR China Select Index -2.0 pct

SHANGHAI, Jan 15 (Reuters) - China and Hong Kong stocks climbed on Tuesday as Beijing signalled more stimulus to bolster a slowing economy, a day after the world’s largest trading nation posted weaker-than-expected monthly trade data.

** The CSI300 index rose 1.5 percent to 3,112.32 points at the end of the morning session, while the Shanghai Composite Index gained 1 percent to 2,560.17 points. ** The Hang Seng index added 1.7 percent to 26,746.57 points, and the Hong Kong China Enterprises Index gained 1.8 percent to 10,478.00 points. ** China will aim to achieve “a good start” in the first quarter for the economy, the state planner said on Tuesday, signalling authorities could roll out more stimulus measures in the near term to counter slowing growth.

** The world’s second-biggest economy slowed in 2018 as Chinese authorities carried out painful long-term structural adjustments to transition to a more gradual but sustainable growth trajectory.

** Premier Li Keqiang said China achieved its key 2018 economic targets, which were “hard-worn”, and seeks a strong start to the economy in the first quarter to establish conditions helpful to meeting this year’s goals, according to state television on Monday.

** That came after lacklustre data showing China’s exports unexpectedly fell the most in two years in December, while imports also contracted, pointing to further weakness in the world’s second-largest economy in 2019 and deteriorating global demand.

** Cash injection through reverse repo operations in China and funds released from cuts to the reserve requirement ratio (RRR) were “meant to keep banking system liquidity reasonably ample”, China’s central bank said on Tuesday.

** The PBOC announced earlier this month that it was cutting the ratio of cash that banks must hold as reserves by 100 basis points (bps), with the first stage of 50 bps reduction effective on Tuesday. And the freed up funds will be used to repay some maturing medium-term lending facility (MLF) loans.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.12 percent, while Japan’s Nikkei index rose 0.96 percent. ** The yuan was quoted at 6.7512 per U.S. dollar, 0.23 percent firmer than the previous close of 6.767. ** The largest percentage gainers in the main Shanghai Composite index were Pengqi Technology Development Co Ltd, which rose 10.07 percent, followed by Pengqi Technology Development Co Ltd, which gained as much as 10.05 percent and Henan Huanghe Whirlwind Co Ltd, which climbed up to 10.03 percent. ** The largest percentage losses in the Shanghai index were Zoy Home Furnishing Co Ltd, which slipped as much as 10.01 percent, followed by Zhongchang Big Data Corp Ltd , which lost 8.9 percent and Sumec Corp Ltd , which declined 8.32 percent. ** So far this year, the Shanghai stock index is up 1.68 percent, while China’s H-share index rose 1.7 percent. Shanghai stocks climbed 1.68 percent this month. ** The top gainers among H-shares were China Tower Corp Ltd , up 5.44 percent, followed by ZhongAn Online P & C Insurance Co Ltd, gaining 4.37 percent and China Telecom Corp Ltd, up by 4.01 percent. ** The three biggest H-shares percentage decliners were SINOPHARM GROUP CO LTD, which has fallen 0.15 percent, China Vanke Co Ltd, which has lost 0.0 percent and PICC Property and Casualty Co Ltd, down by 0.3 percent.

** About 8.61 billion shares have traded so far on the Shanghai exchange, roughly 63.0 percent of the market’s 30-day moving average of 13.66 billion shares a day. The volume traded was 14.48 billion shares, as of the last trading day.

** As of 0402 GMT, China’s A-shares were trading at a premium of 17.95 percent over the Hong Kong-listed H-shares.

Reporting by Luoyan Liu and John Ruwitch, Editing by Sherry Jacob-Phillips

Nuestros Estándares:Los principios Thomson Reuters
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