August 24, 2017 / 5:03 AM / in a year

China stocks flat as China Unicom slumps; Hong Kong follows Asian markets up

* SSEC flat, CSI300 -0.2 pct, HSI +0.6 pct

* China Unicom falls on profit-taking

* State enterprise reform remains a good theme - trader

SHANGHAI, Aug 24 (Reuters) - China share indexes barely moved on Thursday morning, as profit-taking in China Unicom Network Communications Ltd cooled excitement about state enterprise reforms, though raw material stocks rebounded, aided by a weaker dollar.

Hong Kong shares, which resumed trading after a one-day closure for a strong typhoon, followed Asian markets higher, helped by solid gains in financial and consumer stocks.

The CSI300 index was down l 0.2 percent, to 3,750.19 points at the end of the morning and the Shanghai Composite Index was basically unchanged, at 3,286.42 points.

Risk appetites were reduced by a 4 percent pull-back in China Unicom, as some investors pocketed gains produced by the stock’s spiking 10 percent on both Monday and Tuesday, before slipping 0.9 percent on Wednesday.

The surge was triggered by a planned restructuring that would see the listed telecom operator tap a dozen major investors, including Alibaba Group, Tencent Holdings and Baidu, for funds.

“State-owned enterprise restructuring remains an attractive investment theme, and we have been looking for the next company that will likely undergo restructuring,” said Wu Kan, head of equity trading at Shanshan Finance.

The Ministry of Finance said on Thursday that profits at China’s state-owned firms rose 23.1 percent in the first seven months of 2017 from a year earlier.

The Securities Times newspaper reported that the government has already selected SOEs to take part in a third round of its mixed ownership reform programme.

Wu said that the recent sharp correction in cyclical stocks could provide buying opportunities, if coming economic indicators point to continued recovery.

Raw material shares, which fell more than 2 percent on Wednesday, rebounded 0.6 percent. Some analysts say a weaker U.S. dollar would strengthen commodity prices, and thus benefit producers.


In Hong Kong, the Hang Seng index added 0.6 percent, to 27,567.73 points, while the Hong Kong China Enterprises Index gained 1.2 percent, to 11,082.24.

The market drew support from other Asian markets that shook off the risk aversion that gripped financial markets overnight after President Donald Trump’s threat to shut the U.S. government.

The financial subindex rose nearly 1 percent, while that for consumer stocks was up 0.8 percent.

Shares of Chinese developer Guangzhou R&F Properties Co Ltd jumped as much as 10 percent to their highest since July 2009, bolstered by strong earnings growth.

Reporting by Samuel Shen and John Ruwitch; Editing by Richard Borsuk

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below