* HSI +0.5 pct, H-shares +0.4 pct, CSI300 +0.8 pct
* PBOC cash injection eases China tightening worries
* AIA hits record high, 2012 net profit jumped 89 pct
* Chinese brokers rise after more regulator moves
By Clement Tan
HONG KONG, Feb 27 China shares rebounded from
multi-week lows on Wednesday, led by strength in the brokerage
sector on signs of more financial innovation as the central bank
eased tightening concerns after injecting funds into the money
The Hong Kong market bounced off a two-month low, with AIA
Group among the leading boosts after it posted strong
profit growth. An affirmation by the U.S. Federal Reserve of its
stimulative monetary policies also provided some respite.
The Hang Seng Index went into the midday trading
break up 0.5 percent at 22,624.1 after closing on Tuesday at its
lowest since Dec. 21. The China Enterprises Index of the
top Chinese listings in Hong Kong climbed 0.4 percent.
In the mainland, the CSI300 of the top Shanghai
and Shenzhen A-share listings rose 0.8 percent, while the
Shanghai Composite Index gained 0.3 percent. Both had
hit their lowest since January on Tuesday.
Early gains came as China's central bank looks set to resume
injecting liquidity into the money market, traders said on
Wednesday, a move that will relieve those who worried that
recent moves to drain money signalled the beginning of a wider
"I don't think there will be too much negative surprises
from here, so this might be a good point to selectively buy on
weakness into sectors with a good longer-term growth story,"
said Wang Aochao, UOB Kay Hian's Shanghai-based head of
The Chinese brokerage sector is one such example. On
Wednesday, the sector rose after China's market regulator issued
draft rules on Tuesday that would make it easier for brokerages
to package, securitise and resell a wide range of assets from
real estate to receivables to commercial paper.
Shares of Citic Securities and Haitong
Securities , the country's two largest
listed brokerages, each rose more than 2 percent in Shanghai. In
Hong Kong, Citic rose 2.8 percent, but is still some 12 percent
off a Jan. 30 high.
Chinese brokerages are likely to benefit from incremental
moves Beijing is likely to make throughout the year to
liberalise capital markets in the mainland, a focus likely to be
reinforced at next week's annual parliamentary meetings.
The official China Securities Journal reported on Wednesday
that the securities regulator repeated its pledge to encourage
long-term investment in stocks, while supporting the expansion
of domestic institutional investors.
The annual Chinese People's Political Consultative
Conference and National People's Congress, where Xi Jinping is
expected to be confirmed as China's president, start in Beijing
on March 3 and 5, respectively.
"I don't think there will be too many negative surprises
from this year's meeting because of this transition process,"
UOB-Kay Hian's Wang said.
EARNINGS IN FOCUS
AIA Group jumped 3.5 percent to a record high
after Asia's third-largest insurer posted an 89 percent growth
in 2012 net profit, while announcing plans to open a
representative office in Myanmar.
AIA shares have bucked the downward trend in the broader
Hong Kong market in February as investors opted for its
perceived earnings safety. It is up 5.5 percent on the month,
compared with the 4.6 percent loss for the Hang Seng Index.
Esprit Holdings, Hong Kong Exchange (HKEx)
, New World Development and casino operator
SJM Holdings are among a slew of companies due to also
report corporate earnings later in the day.
Espirit rose 1.2 percent and HKEx rose 0.8 percent ahead of
respective earnings reports.