November 12, 2019 / 7:42 AM / a month ago

China stocks end higher ahead of Trump's trade cues

* Shanghai shares +0.2%, blue chips flat

* Market awaits Trump key speech for clues on tariffs

* China’s Oct bank loan growth slow to 22-month lows

HONG KONG, Nov 12 (Reuters) - Shares in Shanghai ended firmer on Tuesday, after having dithered either side of flat, ahead of a key speech by U.S. President Donald Trump at the Economic Club of New York that may offer clues on the likelihood of a trade deal with China.

** At the close, the Shanghai Composite index ticked up 0.2% to 2,914.82 points, while the blue-chip CSI300 index finished the session at 3903.69, largely unchanged from Monday’s close. ** CSI300’s financial sector sub-index closed higher by 0.2%, the consumer staples sector gained 0.4%, while information technology shares ended 0.2% lower. ** The smaller Shenzhen index gained 0.2% and the start-up board ChiNext Composite index weakened by 0.1%. ** The market maintained a cautious stance awaiting clues on the Sino-U.S. phase-one trade deal, ahead of a speech by U.S. President Trump at the Economic Club of New York scheduled for later in the day. ** Trump shook markets by denying reports of Washington rolling back tariffs on Chinese goods over the weekend. ** New bank loans in China fell more than expected to their lowest in 22 months in October, though seasonal factors likely contributed to the steep drop and policymakers are still expected to ramp up support. ** Chinese regulators have been trying to boost bank lending and lower financing costs for over a year, but domestic demand remains sluggish as investment and consumption weakens, while escalating U.S.-China trade tensions weigh on exports. ** Chinese policymakers should pursue a proactive fiscal policy and cut interest rates to support flagging economic growth, a financial magazine quoted People’s Bank of China (PBOC) adviser Sheng Songcheng on Tuesday as saying. ** “Despite all the recent noise the market fundamentals remain relatively stable that should give equities some support,” Gerry Alfanso, analyst at brokerage Shenwan Hongyuan, wrote in a note on Tuesday. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.5%, while Japan’s Nikkei index closed up 0.8%. ** So far this year, the Shanghai stock index is up 16.9% and the CSI300 climbed 29.7%. Shanghai stocks declined 0.49% this month. ** About 12.97 billion shares were traded on the Shanghai exchange. The volume in the previous trading session was 15.79 billion. ** The Shanghai stock index is below its 50-day moving average and its 200-day moving average.

Reporting by Noah Sin, Editing by Sherry Jacob-Phillips

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