November 9, 2017 / 4:40 AM / a year ago

Hong Kong, China stocks firm as China inflation signal economy remains robust

* SSEC flat, CSI300 +0.1 pct, HSI +0.9 pct

* Tencent hit record on news of investment in Snapchat

* China Oct factory gate inflation surprisingly strong

SHANGHAI, Nov 9 (Reuters) - Hong Kong stocks hit another decade-peak on Thursday morning, while China’s blue-chip index hovered near two-year highs, as investor confidence was underpinned by China’s strong inflation data that showed economic momentum remains robust.

The Hang Seng index added 0.9 percent to 29,170.22 points by the lunch break, while the Hong Kong China Enterprises Index gained 1.4 percent, to 11,742.76.

In China, the bluechip CSI300 index rose 0.1 percent to 4,049.89 points, while the Shanghai Composite Index was unchanged at 3,416.32 points.

China’s producer prices were surprisingly strong in October, while consumer inflation picked up pace, suggesting the economy remains robust, easing market concerns of a slowdown.

Sentiment was also aided by Chinese media reports that stock fund sales have begun to pick up in recent months in China, potentially channelling fresh money into the market.

Underscoring rising risk appetite in China, outstanding margin loans - money investors borrow to buy stocks - has stayed for four consecutive days above 1 trillion yuan, a level not seen since January, 2016.

Most sectors rose in Hong Kong, with energy and IT shares leading the gain.

Chinese tech giant and index heavyweight Tencent Holdings rose to a fresh record, on news that it had taken a 12 percent stake in Snapchat.

Reporting by Samuel Shen and John Ruwitch; Editing by Shri Navaratnam

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