April 28, 2020 / 7:52 AM / a month ago

Shanghai shares fall before earnings; blue-chips, start-ups climb on reform

* CSI300 adds 0.7%, Chinext up 0.6% but Shanghai slides 0.2%

* Start-up board reform positive for A-shares - Morgan Stanley

* Banks to report earnings; regulator warns on wealth products

HONG KONG, April 28 (Reuters) - China’s blue-chip and start-up shares inched up on Tuesday after fresh regulatory reform cheered the market, but the main Shanghai benchmark slipped as big banks lined up their earnings following a tumultuous first quarter.

** The blue-chip CSI300 index added 0.7%, with its financial sector sub-index higher by 0.9%, the consumer staples sector up 1.5%, the real estate index up 1.1% and the healthcare sub-index up 0.2%.

** The Shanghai Composite index closed down 0.2% at 2,810.02, having dipped to its lowest level in over three weeks and then fitted in and out of positive territory during the session. ** The smaller Shenzhen index fell 0.3% and the start-up board ChiNext Composite index was higher by 0.6%.

** China kicked off a reform this week to fast-track initial public offerings (IPOs) on Shenzhen’s start-up board ChiNext, as Beijing accelerates capital market restructuring to reinvigorate an economy ravaged by coronavirus.

** “We consider ChiNext’s IPO registration reform as long-term positive for the Ashare market,” Morgan Stanley’s analysts said in a note. They said extending eligibility of IPO companies and creating more comprehensive de-listing rules would “continue to make the A-share market more attractive as an IPO destination and discourage speculative activities.”

** China’s banking regulator has asked commercial banks to halt new sales of a wide range of wealth management products that might lead to unlimited losses for investors, a week after heavy losses were recorded in a crude oil futures trading product sold by the country’s fourth-largest lender.

** Investors are worried that a broader tightening on such products could hurt bank profits, said Anthony Chan, chief Asia investment strategist at Union Bancaire Privée. Bank of Communications and ICBC are among banks reporting earnings in the coming days.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.4%, while Japan’s Nikkei index closed down 0.1%. ** At 0717 GMT, the yuan was 0.02% stronger at 7.0854 per U.S. dollar. ** So far this year, the Shanghai stock index is down 7.9% and the CSI300 has fallen 6%. Shanghai stocks have risen 2.2% this month. ** About 25.39 billion shares were traded on the Shanghai exchange. The volume in the previous trading session was 21.01 billion. ** The Shanghai stock index is below its 50-day moving average and below its 200-day moving average.

Reporting by Noah Sin; Editing by Rashmi Aich

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