Financial Services

China stocks rise as govt help seen for consumption; Hang Seng up

* SSEC +1.0 pct, CSI300 +1.3 pct, HSI +0.9 pct

* Consumer firms up as Beijing signals encouragement of domestic consumption

* China’s yuan rises on stronger-than-expected fixing

SHANGHAI, Sept 21 (Reuters) – China stocks rose on Friday, with consumer shares leading the gains, as investors expected Beijing to help boost domestic consumption amid continued uncertainty over global trade. ** At the midday break, the Shanghai Composite index was up 26.76 points or 0.98 percent at 2,756.01. ** China’s blue-chip CSI300 index rose 1.31 percent, with its financial sector sub-index gaining 1.74 percent, the real estate index rose 1.8 percent and the healthcare sub-index climbed 0.48 percent. ** Shares of China’s consumer goods companies climbed on expectations of rising sales after China’s State Council issued guidelines to boost the country’s consumption potential. An index tracking major consumer firms rose 1.76 percent. ** China hopes the United States will show sincerity and take steps to correct its behaviour, its commerce ministry said on Thursday, after both countries slapped new tariffs on each other’s goods this week in an escalating trade war. ** The Trump administration imposed sanctions on the Chinese military for buying fighter jets and missile systems from Russia in contravention of a sweeping U.S. sanctions law. ** Chinese H-shares listed in Hong Kong rose 1.34 percent to 10,936.84, while the Hang Seng Index climbed 0.93 percent to 27,733.53. ** The smaller Shenzhen index rose 0.68 percent and the start-up board ChiNext Composite index climbed 0.45 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.93 percent, while Japan’s Nikkei index rose 0.97 percent. ** The yuan was quoted at 6.841 per U.S. dollar, 0.07 percent firmer than the previous close of 6.846. On Friday, the People’s Bank of China set the midpoint for the yuan’s daily trading band at a firmer-than-expected 6.8357 per dollar. ** Shares of China National Nuclear Power Corp are up 2.2 percent after the company said the world’s first Westinghouse-designed AP1000 nuclear reactor on China’s east coast is ready to go into commercial operation.

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** The largest percentage gainers in the main Shanghai Composite index were Shenzhen Geoway Co Ltd, rising 10.1 percent, followed by Jinxi Axle Co Ltd, gaining 10.09 percent and Ningbo Heli Mould Technology Co Ltd , up by 10.01 percent. ** The largest percentage losses in the Shanghai index were Sichuan Golden Summit Group Joint Stock Co Ltd, down 10.04 percent, followed by A-Zenith Home Furnishings Co Ltd , losing 10 percent and Pengxin International Mining Co Ltd, down by 8.83 percent. ** So far this year, the Shanghai stock index plunged 17.47 percent, while China’s H-share index lost 7.8 percent. Shanghai stocks edged 0.15 percent higher this month. ** Hong Kong shares of HSBC Holdings rose 1.1 percent after the bank said it would issue 1 billion pounds ($1.33 billion) worth of 5.875 percent perpetual subordinated contingent convertible securities. ** The top gainers among H-shares were ZhongAn Online P & C Insurance Co Ltd, up 6.98 percent, followed by Great Wall Motor Co Ltd, which gained as much as 6.3 percent and Dongfeng Motor Group Co Ltd, which rose up to 4.98 percent. ** The three biggest H-shares percentage decliners were CNOOC Ltd, which dropped 3.68 percent, China Gas Holdings Ltd, which lost 2.4 percent and China Mobile Ltd , which edged 0.6 percent lower. ** About 6.38 billion shares have traded so far on the Shanghai exchange, roughly 58.5 percent of the market’s 30-day moving average of 10.91 billion shares a day. The volume traded was 11.14 billion, as of the last full trading day. ** As of 0416 GMT, China’s A-shares were trading at a premium of 18.80 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. ** The price-to-earnings ratio of the Shanghai index was 11.52, as of the last full trading day, while the dividend yield was 2.8 percent. ** So far this week, the market capitalisation of the Shanghai stock index rose 1.78 percent to 29.10 trillion yuan. ** In Hong Kong, the sub-index of the Hang Seng index tracking energy shares dipped 0.8 percent, while the IT sector rose 1.3 percent. The top gainer on Hang Seng was Geely Automobile Holdings Ltd, which rose 5.09 percent, while the biggest loser was CNOOC Ltd, which declined by 3.68 percent.

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($1 = 0.7536 pounds)

Reporting by Andrew Galbraith, Editing by Sherry


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