July 20, 2018 / 7:49 AM / 9 months ago

China stocks rebound, led by surge in bank shares

* Shanghai stocks higher, blue-chip CSI300 index up Bank shares surge on expectations of looser WMP rules China’s A-shares at 20.01 percent premium over H-shares.

SHANGHAI, July 20 (Reuters) - China stocks rebounded nearly 2 percent on Friday erasing this week’s losses as investors piled into financial shares after a media report suggested looser-than-expected asset management rules.

** The blue-chip CSI300 index rose 1.9 percent, to 3,492.89, while the Shanghai Composite Index gained 2 percent to 2,829.27 points.

** The 21st Century Business Herald reported on Friday that China will soon publish detailed rules on banks’ wealth management products (WMPs). It is still not clear whether the threshold for WMPs will be lowered, or whether WMPs will be allowed to invest in the secondary market, the newspaper said.

** Investors view the report as a sign that the new rules will be less rigid than expected, helping drive up banking shares by over 4 percent. ** The blue-chip CSI300 financial sector sub-index rose 3.79 percent, the consumer staples sector up 0.48 percent, the real estate index up 1.96 percent and healthcare sub-index up 0.36 percent. ** The smaller Shenzhen index ended up 1.13 percent and the start-up board ChiNext Composite index was higher by 1.23 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.6 percent while Japan’s Nikkei index closed down 0.29 percent. ** At 07:12 GMT, the yuan was quoted at 6.7755 per U.S. dollar, 0.06 percent firmer than the previous close of 6.7796. ** The largest percentage gainers in the main Shanghai Composite index were Bank of Chengdu Co Ltd up 10.06 percent, followed by Fujian Start Group Co Ltd gaining 10.06 percent and Shandong Huapeng Glass Co Ltd up by 10.06 percent. ** The largest percentage losses in the Shanghai index were Hainan Airlines Holding Co Ltd down 10.04 percent, followed by Hainan Airlines Holding Co Ltd losing 9.91 percent and Ningxia Xinri Hengli Steel Wire Rope Co Ltd down by 8.68 percent. ** So far this year, the Shanghai stock index is down 14.5 percent, the CSI300 has fallen 13.3 percent while China’s H-share index listed in Hong Kong is down 8.6 percent. Shanghai stocks have declined 0.64 percent this month.

** About 14.59 billion shares were traded on the Shanghai exchange, roughly 112.6 percent of the market’s 30-day moving average of 12.96 billion shares a day. The volume in the previous trading session was 11.45 billion. (Reporting by Shanghai Newsroom; Editing by Sunil Nair)

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