November 4, 2019 / 4:24 AM / 11 days ago

China, Hong Kong stocks rise on trade deal optimism

* SSEC 0.8%, CSI300 0.8%, HSI 1.3%

* HK->Shanghai Connect daily quota used 2.6%, Shanghai->HK daily quota used 0.8%

* FTSE China A50 +0.6%

SHANGHAI, Nov 4(Reuters) - China and Hong Kong stocks climbed on Monday, with the latter hitting a more than three-month high, bolstered by increasing optimism about the prospects for a Sino-U.S. trade deal.

** The CSI300 index rose 0.8%, to 3,982.52 points at the end of the morning session, while the Shanghai Composite Index gained 0.8%, to 2,980.43 points.

** The Hang Seng index added 1.3% to 27,448.24 points, while the Hong Kong China Enterprises Index gained 1.5% to 10,779.38 points, both hitting their highest in more than three months.

** The United States and China on Friday said they made progress in talks aimed at defusing a nearly 16-month-long trade war that has harmed the global economy, and U.S. officials said a deal could be signed this month.

** The Chinese Commerce Ministry on Friday said the world’s two largest economies had reached “consensus on principles” during a “serious and constructive” telephone call between their main trade negotiators.

** Private exporters reported the sale of 132,000 tonnes of U.S. soybeans to China on Friday, the latest in a string of purchases the top buyer of the oilseed has booked as the world’s two largest economies negotiate to end a bilateral trade war that has lasted more than a year.

** Investors also seemed to be encouraged by Beijing’s increasing efforts to open up its financial markets.

** China’s justice ministry on Friday published draft rules to allow foreign companies to list on the country’s stock exchanges, with the intention of implementing the changes on Jan. 1.

** The smooth progress in the Sino-U.S. trade talks could help boost expectations of yuan stabilization, while the reallocation of global assets amid U.S. interest rate cuts would bring more money to the A-share market which enjoys an advantage in terms of valuations, Bohai Securities said in a report.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.97% while Japan’s Nikkei index was down 0.33%.

** The yuan was quoted at 7.0275 per U.S. dollar, 0.14% firmer than the previous close of 7.0372.

** So far this year, the Shanghai stock index is up 18.62%, while China’s H-share index is up 4.9%. Shanghai stocks have risen 0.99% this month.

** About 9.77 billion shares have traded so far on the Shanghai exchange, roughly 62.5% of the market’s 30-day moving average of 15.64 billion shares a day. The volume traded was 15.99 billion as of the last full trading day.

** As of 04:04 GMT, China’s A-shares were trading at a premium of 28.87% over the Hong Kong-listed H-shares. (Reporting by Luoyan Liu and John Ruwitch; Editing by Aditya Soni )

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