* HSI +1.5 pct, H-shares +2.8 pct, CSI300 +2.9 pct
* More light shed on reform details agreed at party plenum
* Gains in markedly stronger volumes, help reverse weekly
* Sun Art Retail dives after Q3 sales disappoint
By Clement Tan
HONG KONG, Nov 15 China shares outpaced most
Asian peers on Friday, after local media reports provided some
details on the reforms the Communist Party had agreed at a
policy meeting, easing initial disappointment earlier this week.
Strength in mainland markets helped accentuate gains in Hong
Kong, which were also buoyed by hopes that easy U.S. monetary
policy could stay in place after favourable comments by the
Federal Reserve's presumptive chief Janet Yellen.
Gains in both markets came in strong volumes, a marked
change from the anemic levels of the last two weeks. Shanghai
bourse volumes at midday have nearly reached the full-day total
recorded in the previous two sessions.
"There's been a change of expectations on reforms today
after the initial communique on Tuesday had disappointed many
with its vagueness," said Guo Yanling, a Shanghai-based analyst
at brokerage Shanghai Securities.
By midday, the CSI300 index of the leading
Shanghai and Shenzhen A-shares rose 2.9 percent, while the
Shanghai Composite Index climbed 2.3 percent. Gains on
Friday so far helped both onshore indexes move back above a key
technical level at their respective 100-day moving averages.
The Hang Seng Index rose 1.5 percent to 22,986.8
points, while the China Enterprises Index of the top
Chinese listings in Hong Kong spiked 2.8 percent. Gains on the
day so far helped all indexes swing into gains for the week.
China's reform plan approved by the party plenum was
"unprecedented" and fundamental changes are expected after
upgrading the market's role in the economy, a senior party
official said in comments published on Friday.
Yang Weimin, vice head of the Office of the Central Leading
Group on Finance and Economic Affairs, told the official
People's Daily in an interview that a more detailed document to
be released next week will involve reforms in 15 areas and 60
specific tasks in 20,000 words.
The initial communique that emerged late on Tuesday had
spawned doubts about the government's commitment to reforming
the world's second-largest economy.
Large cap companies outperformed in the A-share market after
the Securities Times reported on Friday that its parent, the
securities regulator, plans to accelerate a move to force
greater accountability on listed companies for not paying out
dividends if they are able to do so.
Xiao Gang, the chairman of the China Securities Regulatory
Commission, was reported by the official China Securities
Journal to have said that the "decisive" role markets will now
play in China will "usher in unprecedented opportunities for
developing the country's capital market."
Citic and Haitong Securities
, the country's two-largest brokerages, each
jumped about 5 percent in Hong Kong. In Shanghai, Haitong spiked
nearly 9 percent, while Citic jumped 7.6 percent.
Gains for Chinese banking shares came in spite of a jump in
money rates in the mainland. China's benchmark seven-day bond
repurchase agreement opened at 5.2 percent on
Friday morning, up nearly a full percentage point from its
closing quote of 4.3 percent Thursday.
Beijing Enterprises Water and China Everbright
International underperformed, having traded up 1.1
percent and flat, respectively, after China Daily reported
Premier Li Keqiang as saying China will open its energy
conservation and environmental protection industries to foreign
and private investment.
Shares of Sun Art Retail, the mainland biggest
hypermart operator, tumbled 6.1 percent in Hong Kong after
third-quarter sales came in below expectations. Its net profit
had trumped consensus expectations, but that was largely due to
its low base, according to CICC analysts.