November 15, 2018 / 4:55 AM / a month ago

China shares bounce on trade hopes, property data; Hong Kong up

* SSEC 0.7 pct, CSI300 0.5 pct, HSI 0.4 pct

* Real estate sector gains on data showing rising home prices

* Reuters analysis shows slowing profit growth at Chinese firms

* Tencent lifts Hang Seng after Q3 profits beat expectations

SHANGHAI, Nov 15 (Reuters) - Shares in China rebounded on Thursday morning after China delivered a written response to U.S. trade demands, lifting hopes for a resumption of negotiations, and as property firms gained after data showed new home prices rose in October.

** At the midday break, the Shanghai Composite index was up 18.27 points, or 0.69 percent, at 2,650.51. ** China’s blue-chip CSI300 index was up 0.49 percent, with its financial sector sub-index higher by 0.83 percent, the consumer staples sector up 0.41 percent and the healthcare sub-index down 0.42 percent. ** China has delivered a written response to U.S. demands for wide-ranging trade reforms in a move that could trigger negotiations to bring an end to a withering trade war between the world’s top economies. ** A sub-index tracking real estate firms gained 0.43 percent as new data showed that average new home prices in China’s 70 major cities rose 1.0 percent in October despite slowing investment, led by gains in smaller cities. ** But a Reuters analysis of the earnings of 1,950 firms listed in Shanghai and Shenzhen showed that they managed a combined net profit rise of just 3.9 percent in the third quarter, compared with jumps of 20-55 percent seen in each quarter for the past two years in a warning sign for economic growth. ** Energy firms remained subdued amid weak oil prices. A sub-index tracking the sector was 0.09 percent lower at midday. ** Chinese H-shares listed in Hong Kong rose 0.24 percent at 10,430.65, while the Hang Seng Index was up 0.42 percent at 25,760.92. ** An index in Hong Kong tracking IT companies jumped 2.5 percent, led by Tencent Holdings Ltd, which gained 3.75 percent after posting above-forecast third-quarter profits. ** The smaller Shenzhen index was up 0.47 percent and the start-up board ChiNext Composite index was higher by 0.35 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.31 percent while Japan’s Nikkei index was down 0.74 percent. ** The yuan was quoted at 6.9401 per U.S. dollar, 0.14 percent firmer than the previous close of 6.95. ** The largest percentage gainers in the main Shanghai Composite index were Shanghai Shibei Hi-Tech Co Ltd, up 10.04 percent, followed by Pci-Suntek Technology Co Ltd, gaining 10.03 percent and Jiangxi Hongdu Aviation Industry Co Ltd, up by 10.02 percent. ** The largest percentage losses in the Shanghai index were Shanghai Sunglow Packaging Technology Co Ltd Co Ltd, down 10.01 percent, followed by Nanjing Chixia Development Co Ltd, losing 5.21 percent and Harbin Gong Da High-Tech Enterprise Development Co Ltd, down by 5.11 percent. ** So far this year, the Shanghai stock index is down 20.41 percent, while China’s H-share index is down 11.1 percent. Shanghai stocks have risen 1.13 percent this month. ** Tencent led gains on the Hang Seng and was also the biggest gainer among H-shares, followed by China Huarong Asset Management Co Ltd, gaining 2.65 percent and CITIC Securities Co Ltd, up by 2.11 percent. The biggest loser on the Hang Seng index was Sino Biopharmaceutical Ltd , which was down 5.70 percent. ** The three biggest H-shares percentage decliners were CSPC Pharmaceutical Group Ltd, which has fallen 4.97 percent, Air China Ltd, which has lost 2.1 percent and Great Wall Motor Co Ltd, down by 1.7 percent. ** About 11.63 billion shares have traded so far on the Shanghai exchange, roughly 70.8 percent of the market’s 30-day moving average of 16.43 billion shares a day. The volume traded was 23.84 billion as of the last full trading day. ** As of 04:20 GMT, China’s A-shares were trading at a premium of 18.24 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 10.97 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 risen by 1.29 percent to 28.16 trillion yuan.

Reporting by Andrew Galbraith; Editing by Gopakumar Warrier

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