October 12, 2018 / 4:50 AM / 4 days ago

China blue-chips gain after Thursday rout; Shanghai Composite down

* SSEC -0.1 pct, CSI300 +0.7 pct, HSI +1.2 pct

* Consumer shares lead gains in CSI

* Tencent gains 5.1 pct after hitting 16-month lows

SHANGHAI/HONG KONG, Oct 12 (Reuters) - Shares in China seesawed on Friday after Thursday’s market meltdown, with investors buying up sectors hit by recent heavy selling, but sentiment remained fragile amid worries over global trade, even as China reported unexpectedly strong export data.

** At the midday break, the Shanghai Composite index was down 3.22 points or 0.12 percent at 2,580.24. ** China’s blue-chip CSI300 index clawed back from earlier losses to gain 0.7 percent by the midday break, with its financial sector sub-index higher by 0.94 percent, the consumer staples sector up 2.22 percent, the real estate index up 0.77 percent and the healthcare sub-index up 0.95 percent. ** “People are keeping an eye on the RRR cut,” said the head of sales at a Hong Kong-based brokerage. “The money is coming in next week. That may stabilise sentiments but I don’t expect too much of a reaction, since the authorities have made it clear that they don’t want to loosen too much. On the other hand, the impact of fiscal spending on infrastructure won’t be felt in the near term.” China’s central bank on Sunday announced a cut to the level of cash that banks must hold as reserves. ** Chinese H-shares listed in Hong Kong rose 1.39 percent to 10,233.31 at midday, while the Hang Seng Index was up 1.18 percent at 25,563.53. The IT sector rose 3.2 percent, supported by China’s gaming and social media giant Tencent Holdings Ltd. ** Tencent shares ended the morning 5.09 percent higher, as the firm repurchased shares for a 22nd straight session. ** “The likes of Tencent are liquid, so they recover more quickly. The mid- and low- caps will be under more pressure. But in general, we’ve already had a lot of bearish news about tech, I don’t think there will be more to come,” said a Hong Kong-based fund manager. He said investors in mainland and Hong Kong markets have been buying consumer staples for much of the year as they are less affected by the major negative stories like trade war. “They will recover quicker,” he said. ** China reported on Friday an unexpected acceleration in export growth in September and a record trade surplus with the United States, which could exacerbate an already-heated dispute between Beijing and Washington. ** U.S. President Donald Trump warned on Thursday there was much more he could do that would hurt China’s economy further, showing no signs of backing off an escalating trade war with Beijing. ** The International Monetary Fund said sustained trade tensions could slash Asia’s economic growth by up to 0.9 percentage points in coming years, and warned that the market rout seen in emerging economies could worsen if the U.S. Federal Reserve and other major central banks tightened monetary policy more quickly than expected. ** The smaller Shenzhen index was down 0.8 percent and the start-up board ChiNext Composite index was higher by 0.17 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.55 percent while Japan’s Nikkei index was down 0.25 percent. ** The yuan was quoted at 6.901 per U.S. dollar, 0.18 percent weaker than the previous close of 6.8888. Media reports on Thursday said the U.S. Treasury will not label China a currency manipulator in its semiannual currency report next week. ** The largest percentage gainers in the main Shanghai Composite index were YanTai Yuancheng Gold Co Ltd, up 10.08 percent, followed by Xuancheng Valin Precision Technology Co Ltd gaining 10.02 percent and YAPP Automotive Systems Co Ltd up by 10.02 percent. ** The largest percentage losses in the Shanghai index were Beijing Huaye Capital Holdings Co Ltd, down 10.03 percent, followed by Zhejiang Huahai Pharmaceutical Co Ltd , losing 10.03 percent and Ningbo Jifeng Auto Parts Co Ltd, down by 10.03 percent. ** So far this year, the Shanghai stock index is down 21.88 percent, while China’s H-share index is down 13.8 percent. Shanghai stocks have declined 8.43 percent this month. ** The top gainers among H-shares were China Vanke Co Ltd , up 6.44 percent, followed by Byd Co Ltd, gaining 5.26 percent and Tencent Holdings Ltd, up by 5.02 percent. ** The three biggest H-shares percentage decliners were PetroChina Co Ltd, which has fallen 1.84 percent, China Mobile Ltd, which has lost 1.2 percent and CNOOC Ltd, down by 1.0 percent. ** About 10.31 billion shares have traded so far on the Shanghai exchange, roughly 88.6 percent of the market’s 30-day moving average of 11.64 billion shares a day. The volume traded was 19.72 billion as of the last full trading day. ** As of 04:14 GMT, China’s A-shares were trading at a premium of 22.34 percent over the Hong Kong-listed H-shares. ** The Shanghai stock index is below its 50-day moving average and below its 200-day moving average. ** The price-to-earnings ratio of the Shanghai index was 11.01 as of the last full trading day, while the dividend yield was 2.9 percent. ** So far this week, the market capitalisation of the Shanghai stock index has fallen by 8.43 percent to 27.56 trillion yuan. ** In Hong Kong, the sub-index of the Hang Seng index tracking energy shares dipped 0.5 percent. The top gainer on Hang Seng was Sunny Optical Technology Group Co Ltd, up 7.85 percent, while the biggest loser was PetroChina Co Ltd , which was down 1.84 percent.

Reporting by Andrew Galbraith and Noah Sin; Editing by Gopakumar Warrier

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