China’s blue-chip index rises after upbeat industrial profits; Hong Kong up


SSEC -0.2%, CSI300 0.1%, HSI 0.7%

HK->Shanghai Connect daily quota used -1.5%, Shanghai->HK daily quota used 2.5%

FTSE China A50 +0.4%

SHANGHAI, Sept 28 (Reuters)China’s blue-chip index started the week on a positive note after latest data pointed to a continued recovery in the world’s second-largest economy from the coronavirus crisis.

** The CSI300 index .CSI300 rose 0.1% to 4,573.45 at the end of the morning session, while the Shanghai Composite Index .SSEC lost 0.2% to 3,212.27.

** Profits at China’s industrial firms grew for the fourth straight month in August, buoyed in part by a rebound in commodities’ prices and equipment manufacturing, the statistics bureau said on Sunday.

** China’s recovery has been gaining momentum as pent-up demand, government stimulus and surprisingly resilient exports propel a rebound.

** Real estate firms led the gains, with the CSI300 real estate index .CSI000952 rising 1.7% by midday as worries over China Evergrande Group 3333.HK eased.

** Hong Kong shares of China Evergrande Group rose more than 10% after the property developer said all measures to reduce debt had achieved positive and notable results.

** Investors have also hunted for bargains following last week’s sharp retreat.

** “We will buy on the dip when there are corrections in sectors we favour,” said Ma Manran, chairman of Beijing Ma Manran Asset Management Company.

** Ma said he only liked leading companies in consumer, health care and emerging industries as China’s economy is transitioning.

** The CSI300 consumer staples index .CSI000912 added 0.5%, while the CSI300 healthcare index .CSI300HC shed 1.5%.

** Bucking the broad strength, China’s semiconductor stocks slid after the United States imposed restrictions on exports to China’s biggest chip maker SMIC, citing a risk of military use.

** Dual-listed SMIC 0981.HK, 688981.SS fell more than 5% in both Hong Kong and Shanghai.

** In Hong Kong, the Hang Seng index .HSI added 0.7% to 23,406.31, while the Hong Kong China Enterprises Index .HSCE gained 0.6%, to 9,353.50.

(Reporting by Luoyan Liu and Brenda Goh; editing by Uttaresh.V)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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