September 6, 2019 / 4:36 AM / a month ago

China, HK stocks set for best week since June amid trade optimism

* SSEC 0.2%, CSI300 0.3%, HSI 0.6%

* HK->Shanghai Connect daily quota used 7.5%, Shanghai->HK daily quota used 2.2%

* FTSE China A50 +0.4%

SHANGHAI, Sept 6 (Reuters) - China and Hong Kong stocks firmed on Friday, on track for their biggest weekly gains since late June, helped by hopes of a de-escalation in the protracted Sino-U.S. trade dispute.

** The CSI300 index was up 0.3% at 3,935.02 points at the end of the morning session, while the Shanghai Composite Index gained 0.2% to 2,990.63 points.

** The Hang Seng index added 0.6% to 26,672.60 points, while the Hong Kong China Enterprises Index gained 0.3% to 10,415.09 points.

** By noon, CSI300 and SSEC gained 3.6% each for the week, while HSI was up 3.7%, all posting their best week since late June.

** China and the United States on Thursday agreed to hold high-level talks in early October in Washington, cheering investors hoping for a trade war thaw as new U.S. tariffs on Chinese consumer goods chip away at global growth.

** They would be the first in-person, high-level discussions since a failed U.S.-China trade meeting at the end of July prompted U.S. President Donald Trump to proceed with fresh tariffs on virtually all remaining Chinese imports so far untouched by the trade war.

** The robust gains were also bolstered by Beijing’s pledge to further support the economy.

** China will implement both broad and targeted cuts in the reserve requirement ratio (RRR) for banks “in a timely manner,” China’s cabinet said in a meeting on Wednesday, an indication that a cut in the key ratio aimed at boosting lending could be imminent.

** Though worries over political protests still lingered in Hong Kong.

** Hong Kong is bracing for more demonstrations this weekend, with protesters threatening to disrupt transport links to the airport, after embattled leader Carrie Lam’s withdrawal of a controversial extradition bill failed to appease some activists.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.51%, while Japan’s Nikkei index was up 0.62%.

** The yuan was quoted at 7.1465 per U.S. dollar, 0.05% firmer than the previous close of 7.1499.

** The largest percentage gainers in the main Shanghai Composite index were Hefei Metalforming Intelligent Manufacturing Co Ltd, which rose 10.04%, followed by Yangzhou Yaxing Motor Coach Co Ltd, which gained 10.04% and IKD Co Ltd, which climbed 10.02%.

** The largest percentage losses in the Shanghai index were Lao Feng Xiang Co Ltd, down 6%, followed by Bomin Electronics Co Ltd, which lost 5.31% and Western Region Gold Co Ltd, down by 5.06%.

** The top gainers among H-shares were Guangzhou Automobile Group Co Ltd, up 4.25%, followed by Shenzhou International Group Holdings Ltd, gaining 3.3% and Haitong Securities Co Ltd, up by 2.72%.

** The three biggest H-shares percentage decliners were China Gas Holdings Ltd, which dropped 6.34%, Anhui Conch Cement Co Ltd, which lost 1.3% and China Resources Land Ltd, which slipped 1%.

** As of 0416 GMT, China’s A-shares were trading at a premium of 27.77% over the Hong Kong-listed H-shares.

Reporting by Luoyan Liu and John Ruwitch, Editing by Sherry Jacob-Phillips

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