June 24, 2020 / 5:14 AM / 2 months ago

China stocks set for weekly gains on upbeat data, Beijing's reforms

* SSEC 0.2%, CSI300 0.2%, HSI 0.1%

* HK->Shanghai Connect daily quota used 2.8%, Shanghai->HK daily quota used 0%

* FTSE China A50 +0.2%

* China markets to be closed on Thursday, Friday

SHANGHAI, June 24 (Reuters) - China stocks rose on Wednesday, set to close the shortened three-session week on a firmer note, as investors cheered improving data from key economies and Beijing’s latest reforms in its capital markets.

** China’s stock market will be closed on Thursday and Friday for the Dragon Boat Festival.

** At the midday break, the Shanghai Composite index was up 0.15% at 2,975.17 points, China’s blue-chip CSI300 index climbed 0.17%, while the start-up board ChiNext Composite index fell 0.42%.

** For the week, SSEC gained 0.3%, while CSI300 rose 0.7%.

** The Shenzhen’s tech-heavy start-up board index advanced 2.3% so far this week, poised for its fifth straight weekly gain.

** Investors have been paying more attention to Beijing’s reforms in its capital markets, rather than to other factors, including the Sino-U.S. trade tensions and the coronavirus outbreak, which has been brought under control now, said Yan Kaiwen, an analyst with China Fortune Securities.

** Also driving “risk-on” sentiment was data showing sales of new U.S. single-family homes increased more than expected in May and a slower-than-expected contraction of U.S. and European business activity last month.

** The benchmark Shanghai index could be trading above the 3,000-level in the second half of 2020 following its revamp, Yan added.

** China said it would revamp its benchmark equity index by introducing more high-tech strength and removing loss-making companies.

** The decision comes shortly after China finalised rules for companies seeking to list on Shenzhen’s ChiNext board that streamline the process and allow the market to fully determine IPO pricing.

** Chinese investors are redoubling bets on already pricey domestic technology shares, playing for reforms and stimulus in a sector key to Beijing’s power rivalry with Washington.

** Chinese H-shares listed in Hong Kong edged 0.1% higher to 10,003.1, while the Hang Seng Index was up 0.06% at 24,921.28.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.64% while Japan’s Nikkei index was up 0.12%.

** The yuan was quoted at 7.0693 per U.S. dollar, 0.17% weaker than the previous close of 7.0575. (Reporting by Luoyan Liu and Andrew Galbraith, Editing by Sherry Jacob-Phillips)

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