China, Hong Kong stocks climb on gains in consumer sector


China and Hong Kong stocks extended their rally on Friday, bolstered by gains in consumer names, as Beijing seeks to further boost consumption and shore up falling growth amid the trade war.

SSEC 0.7%, CSI300 1.0%, HSI 0.8%

HK->Shanghai Connect daily quota used 0%, Shanghai->HK daily quota used 5.8%

FTSE China A50 +0.9%

SHANGHAI, Aug 16 (Reuters) - China and Hong Kong stocks extended their rally on Friday, bolstered by gains in consumer names, as Beijing seeks to further boost consumption and shore up falling growth amid the trade war.

** The CSI300 index .CSI300 rose 1% to 3,729.52 at the end of the morning session, while the Shanghai Composite Index .SSEC gained 0.7% to 2,834.85.

** The Hang Seng index .HSI added 0.8% to 25,700.43, while the Hong Kong China Enterprises Index .HSCE gained 0.7% to 9,974.41.

** China's state planner said on Friday it will roll out a plan to boost disposable income this year and in 2020 to spur consumption as the economy slows.

** On the mainland, the CSI300 consumer staples index .CSI000912 climbed 1.8% by the midday, while the Hang Seng consumer goods index .HSCICG spiked 2.9% in Hong Kong.

** The strong gains also followed a raft of solid earnings reports by leading firms, including Tsingtao Brewery 0168.HK600600.SS and Foshan Haitian Flavouring 603288.SS.

** Financials .CSI300FS.HSCIF also lent some support, as the country's largest insurer Ping An Insurance (Group) Co of China 601318.SS2318.HK added more than 2% following stellar profits in the first half.

** However, analysts expressed caution given various uncertainties at this moment.

** The A-share market could continue to be rangebound until any signs of strong positive signals, amid global recession fears and lingering Sino-U.S. trade tensions, Shanxi Securities said in report.

** U.S. President Donald Trump said on Thursday that U.S. and Chinese negotiators were holding "productive" trade talks and expected them to meet in September despite U.S. tariffs on over $125 billion worth of Chinese imports taking effect Sept 1.

** Nonetheless, China on Thursday vowed to counter the latest U.S. tariffs on $300 billion of Chinese goods but called on the United States to meet it halfway on a potential trade deal.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.36% while Japan's Nikkei index .N225 was up 0.08%.

** The yuan CNY=CFXS was quoted at 7.039 per U.S. dollar, 0.08% weaker than the previous close of 7.0333.

** The largest percentage gainers on the main Shanghai Composite index were DuZhe Publishing & Media Co Ltd 603999.SS, up 10.06%, followed by ZheJiang JiHua Group Co Ltd 603980.SS, gaining 10.05% and WPG (Shanghai) Smart Water Public Co Ltd 603956.SS, up by 10.02%.

** The largest percentage losers on the Shanghai index were Changchun Sinoenergy Corp 600856.SS, down 5.11%, followed by Aurora Optoelectronics Co Ltd 600666.SS, losing 4.95% and Beijing Xinwei Technology Group Co Ltd 600485.SS, down by 4.94%.

** The top gainers among H-shares were China Resources Beer Holdings Co Ltd 0291.HK, up 7.15%, followed by CSPC Pharmaceutical Group Ltd 1093.HK, gaining 4.85% and Shenzhou International Group Holdings Ltd 2313.HK, up by 3.8%.

** The three biggest H-shares percentage decliners were Longfor Group Holdings Ltd 0960.HK, which has fallen 2.70%, China Railway Group Ltd 0390.HK, which has lost 1.4% and CRRC Corp Ltd 1766.HK, down by 1.2%.

** As of 04:15 GMT, China's A-shares were trading at a premium of 31.24% over the Hong Kong-listed H-shares.

China stock market graphics suite

(Reporting by Luoyan Liu and John Ruwitch; editing by Uttaresh.V)

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