January 9, 2019 / 4:34 AM / 9 months ago

China stocks rise on trade talk hopes, policy support plans

* SSEC +1.6 pct, CSI300 +2.0 pct, HSI +2.5 pct

* U.S.-China trade talks to continue Wednesday

* Auto shares gain after official pledges policy support

SHANGHAI, Jan 9 (Reuters) - China stocks rose on Wednesday as the United States and China extended trade talks for an unscheduled third day, giving investors hope that they were moving closer to a deal on trade, and as Beijing signalled more support for domestic spending. ** At the midday break, the Shanghai Composite index was up 1.59 percent at 2,566.66. ** China’s blue-chip CSI300 index was up 1.95 percent, with its financial sector sub-index higher by 1.65 percent, and the healthcare sub-index up 2.41 percent. ** Chinese H-shares listed in Hong Kong rose 2.61 percent to 10,397.96, while the Hang Seng Index was up 2.46 percent at 26,512.06. ** U.S. officials said the trade talks in Beijing would continue into Wednesday amid signs of progress on issues including purchases of U.S. farm and energy commodities and increased access to China’s markets. ** “We believe that the talks far exceeding their initial timeframe indicates that both Chinese and U.S. officials are determined to reach an agreement in these negotiations,” Hu Shaohua, an analyst at Donghai Securities, said in a note. ** Most Chinese automakers rallied after the vice chairman of the country’s state planner said China would introduce policies to boost domestic spending on items including automobiles and home appliances. ** Great Wall Motor Co Ltd was up by the daily 10 percent limit in Shanghai and was 12.06 percent higher in Hong Kong after it signed a memorandum of understanding with an Israel-based technology firm to develop autonomous driving systems for China. But BYD shares fell 2.36 percent in Shenzhen after reports of possible cuts to subsidies for new-energy vehicles. ** The smaller Shenzhen index was up 1.56 percent and the start-up board ChiNext Composite index was higher by 1.21 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.62 percent while Japan’s Nikkei index was up 1.34 percent. ** The yuan was quoted at 6.8382 per U.S. dollar, 0.24 percent firmer than the previous close of 6.8548. ** The largest percentage gainers in the main Shanghai Composite index were Jinzhou Port Co Ltd, up 10.13 percent, followed by Lifan Industry Group Co Ltd, gaining 10.1 percent and Changshu Fengfan Power Equipment Co Ltd , up by 10.08 percent. ** The top percentage losers in the Shanghai index were Pengqi Technology Development Co Ltd, down 6.25 percent, followed by Holsin Engineering Consulting Group Co Ltd , falling 4.22 percent and Shenyang Jinshan Energy Co Ltd, down by 4.07 percent. ** So far this year, the Shanghai stock index is up 1.31 percent, while China’s H-share index is up 0.1 percent. ** The top gainers among H-shares were Great Wall Motor Co Ltd , up 12.06 percent, followed by Guangzhou Automobile Group Co Ltd, gaining 8.84 percent and China Petroleum & Chemical Corp, up by 4.52 percent. ** The biggest H-shares percentage decliners were China Tower Corp Ltd, which has fallen 3.23 percent, and Guangdong Investment Ltd, down 0.5 percent. ** About 11.35 billion shares have traded so far on the Shanghai exchange, roughly 84.8 percent of the market’s 30-day moving average of 13.38 billion shares a day. The volume traded was 15.81 billion as of the last full trading day. ** In Hong Kong, the sub-index of the Hang Seng index tracking energy shares rose 3.6 percent while the IT sector rose 2.2 percent. The top gainer on the Hang Seng was Geely Automobile Holdings Ltd, up 8.81 percent.

Reporting by Andrew Galbraith; Editing by Gopakumar Warrier

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