September 19, 2018 / 7:44 AM / 8 months ago

China stocks rebound as stimulus hopes offset trade war concerns

SHANGHAI, Sept 19 (Reuters) - China stocks rebounded strongly for the second straight day on Wednesday as investors piled into property and consumer stocks, betting Beijing will intensify stimulus measures to cushion the impact of an escalation in the Sino-U.S. trade war.

** The blue-chip CSI300 index rose 1.3 percent to 3,312.48, while the Shanghai Composite Index gained 1.1 percent to 2,730.85.

** China will use the continuing trade war as an opportunity to replace imports, promote localisation and accelerate the development of high-tech products, state-run People’s Daily said in a front-page article on Wednesday.

** The administration of U.S. President Donald Trump said on Monday it would begin to levy new tariffs of 10 percent on $200 billion of Chinese products on Sept. 24, with the tariffs to go up to 25 percent by the end of 2018. China hit back, saying it will levy tariffs on about $60 billion worth of U.S. goods, as previously planned, but cut the tariff rates.

** Hannah Anderson, Global Market Strategist, J.P. Morgan Asset Management, said recent Chinese policy changes will “significantly” mitigate the impact of the trade war on the Chinese economy.

** The CSI300 financial sector sub-index was higher by 1.24 percent, the consumer staples sector up 2.14 percent, the real estate index up 4.61 percent and healthcare sub-index up 1.63 percent. ** The smaller Shenzhen index ended up 1.36 percent and the start-up board ChiNext Composite index was higher by 1.1 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.94 percent, while Japan’s Nikkei index closed up 1.08 percent. ** At 07:25 GMT, the yuan was quoted at 6.8562 per U.S. dollar, 0.08 percent firmer than the previous close of 6.8615. ** The largest percentage gainers in the main Shanghai Composite index were Changchun Sinoenergy Corp, up 10.11 percent, followed by Nanjing Kangni Mechanical & Electrical Co Ltd, gaining 10.08 percent and Jiangsu Rutong Petro-Machinery Co Ltd, up by 10.02 percent. ** The largest percentage losses in the Shanghai index were Pengxin International Mining Co Ltd down 10.03 percent, followed by Sichuan Golden Summit Group Joint Stock Co Ltd losing 9.98 percent and China Resources and Environment Co Ltd down by 8.15 percent. ** As of 07:25 GMT, China’s A-shares were trading at a premium of 19.13 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. (Reporting by Shanghai Newsroom; Editing by Gopakumar Warrier)

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