* HSI +0.4 pct, H-shares + 1.2 pct, CSI300 +2.2 pct
* Financials, insurance firms get boost after China GDP
* Upward momentum seen limited as locked-up shares hit mkt
* Clean energy, telecoms strong on government policy
By Yimou Lee
HONG KONG, July 15 China shares extended recent
gains on Monday, lending support to Hong Kong stocks, as worries
about a potentially sharp slowdown in China eased after GDP data
was in line with expectations.
China's growth slowed in the second quarter to an annual 7.5
percent from 7.7 percent in the first quarter as weak overseas
demand weighed on output and investment, testing Beijing's
resolve to keep up with reforms in the world's second-biggest
By midday, the CSI300 was up 2.2 percent, while
the Shanghai Composite Index gained 1.5 percent to
2,069.34 points. The CSI300 has now bounced 7 percent and the
Shanghai Composite 6 percent from their respective intra-day
lows on June 26, which were their lowest since January 2009.
The Hang Seng Index gained 0.4 percent to 21,368.83
points. The China Enterprises Index of the top Chinese
listings in Hong Kong rose 1.2 percent.
"It will ease investors' worries about a sharp decline in
the Chinese economy, but you can't expect the government will do
anything special for the time being," said Ben Kwong, chief
operating officer at KGI Asia.
"The market will take a breather after its recent rebound.
Under the consolidation mode, traders will just focus on
individual, news-driven stocks," he said, referring to recent
outperformers such as information technology and clean energy
The latest economic growth reading matched the median
forecast in a Reuters poll of 7.5 percent but there is a growing
consensus that China's economy will continue to slow.
Other data released alongside GDP showed industrial output
grew 8.9 percent in June from a year ago, versus expectations of
9.1 percent in the Reuters poll. Retail sales in June rose an
annual 13.3 percent versus an expected 12.9 percent.
China's financial and insurance sectors were robust. In
Shanghai, Haitong Securities rose 6.5 percent to a
one-month high, while Citic Bank spiked 6.7 percent,
set for its best day in almost four months.
Ping An Insurance rose 2.8 percent in
Shanghai and 1.4 percent in Hong Kong.
But analysts said upward momentum in the A-share market will
be limited as shares, previously locked-up, begin to trade.
The official Xinhua news agency reported on Sunday that
China's stock markets will see 673.7 billion yuan ($109.77
billion) in locked-up shares become eligible for trade this
week, the highest weekly value this year.
CLEAN ENERGY, TELECOMS IN FOCUS
China's clean energy and telecommunications sectors were
boosted by Beijing's latest plans to speed up the development of
energy-savings and to encourage private investment in the
In Hong Kong, China Lougyuan rose 4.1 percent to
its highest since June 2011, while GCL-Poly Energy
gained 2.9 percent.
China's Tencent rose 3.9 percent to its highest on
record, while China Unicom gained 0.8 percent.