* SSEC +0.4 pct, CSI300 +0.4 pct, HSI +0.4 pct
* Beijing official signals overcapacity cut in construction
SHANGHAI Feb 9 China stocks hit eight-week
highs on Thursday, getting a boost from glass and cement makers
after the government signalled it would reduce overcapacity in
the construction materials sector.
Hong Kong stocks hit four-month highs, with resources
and industrial stocks among the best
China's CSI300 index and the Shanghai Composite
Index both gained 0.4 percent, to 3,395.95 points and
Cao Xuefeng, head of research at Huaxi Securities in Chengdu,
said regulatory signals to cut overcapacity among construction
materials makers had lifted related stocks.
State media reported on Wednesday that Xu Lejiang, deputy
head of the Ministry of Industry and Information Technology,
said China would step up supply-side reforms in the construction
Industry bellwether Anhui Conch Cement Co Ltd
advanced 5.2 percent by midday.
Shares of glass producers Zhuzhou Kibing Group Co Ltd
and CSG Holding Co Ltd gained nearly 2
Shares of many construction-related Chinese firms have
performed strongly over the past year as higher government
spending on infrastructure projects and a housing frenzy
triggered a building boom. Many analysts, however, that such
investments may be peaking.
An index of environmental protection firms rose
0.7 percent, after China's securities regulator said it would
encourage IPOs from more environmentally friendly companies, the
official Xinhua news agency reported late on Wednesday.
Hong Kong shares were also buoyed by gains in materials
shares, and as expectations of further yuan depreciation
continued to drive mainland China investors into the city's
The Hang Seng index added 0.4 percent to 23,575.91,
while the Hong Kong China Enterprises Index hit a
five-month high, rising 1.3 percent to 10,085.88.
"Some speculators entered the market today after the Hong
Kong stock market had a solid performance yesterday, especially
in blue chips," said Steve Leung, director at UOB Kay Hian
More than 14 percent of the daily southbound quota on the
Shanghai-Hong Kong Stock Connect was used on Wednesday, compared
with an average of nearly 11 percent in January.
Futures prices for steel "rebar" used in construction
gained 1.9 percent by midday.
(Reporting by Jackie Cai and John Ruwitch; Editing by Kim