June 11, 2019 / 4:59 AM / 8 days ago

China stocks rise as govt signals infrastructure boost

* SSEC +1.9%, CSI300 +2.3%; HSI +0.8%, at 3-week high

* Infrastructure stocks up as Beijing vows funding support

* Trump keeps tariffs on table, China quiet on leaders’ summit

HONG KONG, June 11 (Reuters) - The Chinese stock market surged about 2% on Tuesday after the government signalled further funding for infrastructure investments, in an apparent bid to buffer slowing growth. ** At the midday break, the Shanghai Composite index was up 1.9% at 2,905.45, while the blue-chip CSI300 index was up 2.3%. ** CSI300’s financial sector sub-index was higher by 1.9%, the consumer staples sector rallied 4%, real estate stocks gained 1.7% and healthcare shares climbed 2.4%. ** Chinese H-shares listed in Hong Kong rose 0.9%. The Hang Seng Index was up 0.8% at 27,789.05. ** The smaller Shenzhen index was up 2.8% and the start-up board ChiNext Composite index was higher by 3.1%. ** China said on Monday that it will allow local governments to use proceeds from special bonds as capital for major investment projects. Local governments should use special bonds for major projects including highways, gas and power supply and railways, Xinhua state news agency said, citing a cabinet document. ** The news came after China on Monday reported that its exports unexpectedly grew in May despite higher U.S. tariffs, but imports fell the most in nearly three years. ** Shares of China’s infrastructure firms rallied in the morning session. The CSI300 infrastructure index climbed as much as 2.3% to its highest level in over five weeks, and Shanghai-listed shares of China Communications Construction jumped as much as 7.8%. ** Technology stocks, under pressure from profit-taking last week, also jumped 3% on the back of the market-wide advance. ** “Last week the market fell quite a lot, hence (some investors are) buying the dip and entering the market now,” said Zhang Qi, Shanghai-based analyst at Haitong Securities, pointing to high half-day trading volume. ** About 14.52 billion shares have traded so far on the Shanghai exchange, drawing close to the full-day trading volume of 16.66 billion on Monday. ** U.S. President Donald Trump said on Monday he was ready to impose another round of punitive tariffs on Chinese imports if he cannot make progress in trade talks with China’s President at a Group of 20 summit later this month. ** China is open for more trade talks with Washington but has nothing to announce about a possible meeting between the Chinese and U.S. leaders at this month’s G20 summit, the Foreign Ministry said on Monday. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.7% while Japan’s Nikkei index was up 0.3%. ** The largest percentage gainers in the main Shanghai Composite index were Shanghai Yaohua Pilkington Glass Group Co Ltd , Xinjiang Qingsong Building Materials and Chemicals Group Co Ltd, and V V Food & Beverage Co Ltd , all up by 10.1%. ** As of midday, China’s A-shares were trading at a premium of 25.79% over the Hong Kong-listed H-shares.

Reporting by Noah Sin; editing by Uttaresh.V

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