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China shares aim for first gain in 7 days, Hong Kong rebounds
December 18, 2013 / 4:55 AM / 4 years ago

China shares aim for first gain in 7 days, Hong Kong rebounds

* HSI +0.6 pct, H-shares +0.9 pct, CSI300 +0.2 pct

* Hong Kong shares rebound as Fed tapering worries ease

* Kunlun Energy shares drop 1.4 pct after chairman resigns

By Yimou Lee

Dec 18 (Reuters) - Shares in China and Hong Kong, which have been on a downward trend, eked out gains on Wednesday as worries that the U.S. Federal Reserve is poised to start cutting its monetary stimulus eased.

By midday, the Hang Seng Index was up 0.6 percent at 23069.23 points, while the China Enterprises Index of the top Chinese listings in Hong Kong - which has been down four of the past five days - rose 0.9 percent.

The CSI300 rose 0.2 percent, while the Shanghai Composite Index was flat at 2,150.23 points. Both swung in and out of negative territory in the morning trade. China markets have fallen the past six sessions.

A Fed statement following its two-day meeting is expected before Asian markets open on Thursday. Markets are waiting to see if it starts trimming its $85 billion-a-month bond-buying now.

“Investors start to think maybe the Fed will not have any decision on the stimulus cut tonight. The worries about the stimulus seems to be gone,” said Castor Pang, head of research at Core Pacific-Yamaichi.

Insurance firms and brokerages led the rebound in China shares, which have fallen in the past six days. But analysts said investors remained cautious about tight liquidity before the resumption of new share offerings next month.

Shares in Shanxi Securities Company Ltd rose 3.1 percent in Shenzhen, while China Merchants Bank surged 6 percent in Hong Kong.

Shares of Kunlun Energy fell 1.4 percent on Wednesday in resumed trade after the company said its chairman had resigned. Sources told Reuters that chairman Wen Qingshan, who is also a chief accountant at China National Petroleum Company, was being questioned in connection with a graft probe.

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