July 23, 2018 / 4:46 AM / 8 months ago

China stocks rise, but vaccine scandal caps gains; Hong Kong also up

* SSEC 0.4 pct, CSI300 0.2 pct, HSI 0.2 pct

* HK->Shanghai Connect daily quota used -1 pct, Shanghai->HK daily quota used 1.4 pct

* FTSE China A50 +0.2 pct, BNY Mellon ADR China Select Index -0.4 pct

SHANGHAI, July 23 (Reuters) - China stocks rose on Monday as banking and industry sectors climbed, but a slump in healthcare shares amid a vaccine scandal capped the gains. ** The CSI300 index rose 0.2 percent, to 3,498.73 points at the end of the morning session, while the Shanghai Composite Index gained 0.4 percent, to 2,839.83 points. ** An index tracking major healthcare firms on the mainland slumped 4.6 percent, led by a 10 percent drop for Chongqing Zhifei Biological Products, hit by a selloff in biotech stocks amid the scandal that erupted a week ago, after a major vaccine maker was found to have violated standards in making rabies vaccine for humans. ** Chinese Premier Li Keqiang has called for an immediate investigation into the scandal over faulty vaccines that he said had crossed a moral line, and urged severe punishment for the companies and people implicated. ** Meanwhile, investors bought banking and industry stocks, after China released draft rules and guidelines to strengthen regulations of financial institutions’ wealth management and asset management businesses. ** Earlier on Friday, the China Banking and Insurance Regulatory Commission (CBIRC) released long-awaited draft rules on commercial banks’ wealth management products (WMPs), saying that these WMPs should be managed based on their net value. ** “The biggest concern among market participants for Beijing’s deleveraging campaign is a one-size-fits-all approach which could cut off liquidity,” said Yang Hai, strategist at Kaiyuan Securites. ** The new draft rules eased the concern and will bode well for banking firms, Yang added. ** In Hong Kong, the Hang Seng index added 0.2 percent, to 28,266.22 points, while the Hong Kong China Enterprises Index gained 0.5 percent, to 10,739.19. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.01 percent while Japan’s Nikkei index was down 1.48 percent. ** The yuan was quoted at 6.7593 per U.S. dollar, 0.4 percent firmer than the previous close of 6.7864. ** The largest percentage gainers in the main Shanghai Composite index were Long Yuan Construction Group Co Ltd up 10.06 percent, followed by Bank of Chengdu Co Ltd gaining 10.05 percent, and Jiangsu Hongdou Industrial Co Ltd up by 10.03 percent. ** The largest percentage losses in the Shanghai index were Shanghai Hile Bio-Technology Co Ltd down 10.01 percent, followed by Top Choice Medical Investment Co Inc losing 9.99 percent, and Hainan Airlines Holding Co Ltd down by 9.97 percent. ** The top gainers among H-shares were China Communications Construction Co Ltd up 4.9 percent, followed by Anhui Conch Cement Co Ltd gaining 3.31 percent, and China Railway Group Ltd up by 2.61 percent. ** The three biggest H-shares percentage decliners were CSPC Pharmaceutical Group Ltd which has fallen 4.04 percent, ZhongAn Online P & C Insurance Co Ltd which has lost 3.8 percent and China Telecom Corp Ltd down by 2.2 percent. ** About 9.02 billion shares have traded so far on the Shanghai exchange, roughly 69.3 percent of the market’s 30-day moving average of 13.02 billion shares a day. The volume traded was 14.59 billion as of the last full trading day. ** As of 04:15 GMT, China’s A-shares were trading at a premium of 20.70 percent over the Hong Kong-listed H-shares. ** The Shanghai stock index is below its 50-day and 200-day moving averages.

Reporting by Luoyan Liu and John Ruwitch; Editing by Amrutha Gayathri

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