China stocks steady on policy support hopes; HK drops amid protests

Credit: REUTERS/ALY SONG

China stocks recovered from earlier losses on Thursday, as Chinese vice premier called for fresh measures to support the economy amid a bruising trade war with the United States.

SSEC 0.1%, CSI300 0.0%, HSI -0.9%

HK->Shanghai Connect daily quota used 0.9%, Shanghai->HK daily quota used 2.3%

SHANGHAI, June 13 (Reuters) - China stocks recovered from earlier losses on Thursday, as Chinese vice premier called for fresh measures to support the economy amid a bruising trade war with the United States.

** The CSI300 index .CSI300 was unchanged at 3,692.69 points at the end of the morning session, while the Shanghai Composite Index .SSEC gained 0.1% to 2,912.82 points.

** Chinese regulators should step up support for the economy and keep ample liquidity in the financial system, Vice Premier Liu He said on Thursday, suggesting Beijing would soon unveil more policies to bolster growth amid rising U.S. trade pressure.

** Beijing has plenty of policy tools and is capable of dealing with various challenges, Liu said at a financial forum in Shanghai.

** Liu's comments came amid lingering worries over the Sino-U.S. trade tensions, which put China's economy under pressure.

** U.S. President Donald Trump declined to set a deadline on Wednesday for levying tariffs on another $325 billion of Chinese goods and called the relationship with Beijing good but "testy" after China walked back commitments for a trade deal.

** Chinese banks doled out more loans in May to support the slowing economy hurt by a trade war with the United States, with further policy easing likely even amid accelerating consumer inflation.

** The picture is mixed for now, as Beijing stepped up support for the economy via financial and monetary policies, though the murky outlook for the Sino-U.S. trade dispute weighed on the market, Donghai Securities noted in report.

** Overall, the A-share market could turn relatively strong, the brokerage added.

** In Hong Kong, stocks were still under pressure amid large-scale protests. A few thousand protesters in Hong Kong on Thursday readied for potentially more clashes with police over a planned extradition law with mainland China, a day after police fired tear gas and rubber bullets at unarmed demonstrators.

** The Hang Seng index .HSI dropped 0.9% to 27,072.99 points, while the Hong Kong China Enterprises Index .HSCE lost 0.7% to 10,422.35 points.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.71%, while Japan's Nikkei index .N225 was down 0.59%.

** The yuan CNY=CFXS was quoted at 6.921 per U.S. dollar, 0.03% weaker than the previous close of 6.9188.

** The largest percentage gainers in the main Shanghai Composite index were Triumph Science & Technology Co Ltd 600552.SS, up 10.1%, followed by Lanzhou LS Heavy Equipment Co Ltd 603169.SS, gaining 10.04% and Fujian Raynen Technology Co Ltd 603933.SS, up by 10.03%.

** The largest percentage losses in the Shanghai index were Wanxiang Doneed Co Ltd 600371.SS, down 7.22%, followed by China Design Group Co Ltd 603018.SS, losing 6.5% and Gansu Dunhuang Seed Group Co Ltd 600354.SS, dropping by 6%.

** So far this year, the Shanghai stock index is up 16.66%, while China's H-share index is up 3.7%. Shanghai stocks have risen 0.37% this month.

** The top gainers among H-shares were China Telecom Corp Ltd 0728.HK, up 1.79%, followed by China Gas Holdings Ltd 0384.HK, gaining 1.13% and China Merchants Bank Co Ltd 3968.HK, up by 1.04%.

** The three biggest H-shares percentage decliners were Great Wall Motor Co Ltd 2333.HK, which has fallen 4.51%, SINOPHARM GROUP CO LTD 1099.HK, which has lost 2.9% and China Life Insurance Co Ltd 2628.HK, down by 2.8%.

** As of 0429 GMT, China's A-shares were trading at a premium of 27.24% over the Hong Kong-listed H-shares.

China stock market graphics suite http://reut.rs/1NfkoGl

(Reporting by Luoyan Liu and John Ruwitch, Editing by Sherry Jacob-Phillips)

((luoyan.liu@thomsonreuters.com; Reuters Messaging: luoyan.liu.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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