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China stocks end up on trade, stimulus hopes

The blue-chip CSI300 index rose 0.3 per cent, to 3,880.84

Reuters|
Oct 21, 2019, 12.59 PM IST
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China stocks
As of 07:15 GMT, China's A-shares were trading at a premium of 29.30 per cent over the Hong Kong-listed H-shares.
China stocks closed up on Monday, on hopes China and the United States could sign a trade deal and that Beijing would continue its policy support for the economy.

The blue-chip CSI300 index rose 0.3 per cent, to 3,880.84, while the Shanghai Composite Index added 0.1 per cent to 2,939.62.

US President Donald Trump on Friday said he thought a trade deal between the United States and China would be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on Nov. 16 and 17.

Chinese Vice Premier Liu He said on Saturday that China would work with the United States to address each other's core concerns on the basis of equality and mutual respect, and that stopping the trade war would be good for both sides and the world.

Data on Friday showed China's GDP growth slowed to a near 30-year low, reinforcing hopes Beijing will roll out fresh support.

China's state planner in September more than doubled its approval for fixed-asset investment projects, as Beijing looks to step up support for the economy.

China on Monday unexpectedly kept unchanged its new benchmark lending rate, though analysts argued the decision does not point to an end to the downward adjustment in the loan prime rate (LPR).

"Looking ahead, we still see each monthly LPR re-set as providing an opportunity for a baby-step reduction," said Frances Cheung, head of Asia macro strategy at Westpac in Singapore.

Overall China's economy in the first three quarters remained relatively stable, showing strong resilience, and there would be a positive impact from the Sino-US trade talks if they move towards solving the problem, Guosen Securities noted in a report.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.28 per cent, while Japan's Nikkei index closed up 0.25 per cent.

At 07:14 GMT, the yuan was quoted at 7.074 per US dollar, 0.1 per cent firmer than the previous close of 7.081.

So far this year, the Shanghai stock index is up 17.9 per cent and the CSI300 has risen 28.9 per cent, while China's H-share index listed in Hong Kong is up 4.3 per cent. Shanghai stocks have risen 1.19 per cent this month.

About 13.25 billion shares were traded on the Shanghai exchange, roughly 72.5 per cent of the market's 30-day moving average of 18.26 billion shares a day. The volume in the previous trading session was 15.00 billion.

As of 07:15 GMT, China's A-shares were trading at a premium of 29.30 per cent over the Hong Kong-listed H-shares.

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