March 6, 2018 / 4:25 AM / 14 days ago

Hong Kong stocks rally as trade war worries ease; China up

* SSEC 0.2 pct, CSI300 0.2 pct, HSI 1.4 pct

* HK->Shanghai Connect daily quota used 1.1 pct

* Shanghai->HK daily quota used -1.9 pct

* FTSE China A50 -0.1 pct, BNY Mellon ADR China Select Index +0.7 pct

SHANGHAI, March 6 (Reuters) - Hong Kong shares rallied on Tuesday morning, tracking gains in other Asian markets, after U.S. President Donald Trump faced growing pressure from political allies to pull back from the proposed steel and aluminium tariffs, easing investor worries about an imminent trade war. ** Wall Street shares have now recouped all the losses incurred after Trump unveiled a plan to impose tariffs on steel and aluminium late on Thursday. ** China stocks held steady by the lunch break, with the tech-heavy start-up index ChiNextp extending a robust rally, as the country plans new share issue option to bring tech giants home. ** China may allow its offshore-listed tech giants to sell a form of shares on the mainland, people with knowledge of the plan said, in a move that would pit Shanghai and Shenzhen against Hong Kong in the battle to host the country’s tech giants. ** “The prospects of unicorns coming to China may stir enthusiasm toward high-tech stocks,” said Yang Hai, strategist at Kaiyuan Securities. ** “It also fits into the government’s desire to improve China’s economic structure. The old economy needs to make way for the new economy.” ** At 04:02 GMT, the Shanghai Composite index was up 6.78 points, or 0.21 percent, at 3,263.71. ** China’s blue-chip CSI300 index was up 0.24 percent, with its financial sector sub-index higher by 0.17 percent, the consumer staples sector down 1.59 percent, the real estate index up 0.52 percent and healthcare sub-index up 1.68 percent. ** Chinese H-shares listed in Hong Kong rose 1.34 percent at 12,152.59, while the Hang Seng Index was up 1.39 percent at 30,300.96. ** The smaller Shenzhen index was up 0.67 percent and the start-up board ChiNext Composite index was higher by 0.56 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.38 percent while Japan’s Nikkei index was up 2.11 percent. ** The yuan was quoted at 6.3406 per U.S. dollar, 0.02 percent firmer than the previous close of 6.3419. ** The largest percentage gainers in the main Shanghai Composite index were Founder Technology Group Co Ltd up 10.14 percent, followed by Far East Smarter Energy Co Ltd gaining 10.08 percent and Jiangsu Zongyi Co Ltd up by 10.03 percent. ** The largest percentage losses in the Shanghai index were Guangdong Meiyan Jixiang Hydropower Co Ltd down 5.31 percent, followed by Gansu Ronghua Industry Group Co Ltd losing 5.29 percent and Shanghai Baosight Software Co Ltd down by 4.78 percent. ** So far this year, the Shanghai stock index is down -1.3 percent, while China’s H-share index is up 1.3 percent. Shanghai stocks have gained 0.13 percent this month. ** The top gainers among H-shares were CNOOC Ltd up 4.25 percent, followed by Byd Co Ltd gaining 4.2 percent and China Galaxy Securities Co Ltd up by 3.69 percent. ** The three biggest H-shares percentage decliners were China Vanke Co Ltd which has fallen 0.86 percent, Huaneng Power International Inc which has lost 0.8 percent and Zhuzhou CRRC Times Electric Co Ltd down 0.6 percent. ** About 9.00 billion shares have traded so far on the Shanghai exchange, roughly 44.3 percent of the market’s 30-day moving average of 20.30 billion shares a day. The volume traded was 14.48 billion as of the last full trading day. ** As of 04:02 GMT, China’s A-shares were trading at a premium of 28.71 percent over the Hong Kong-listed H-shares. ** The Shanghai stock index is below its 50-day moving average and below its 200-day moving average. ** The price-to-earnings ratio of the Shanghai index was 14.85 as of the last full trading day while the dividend yield was 2 percent. ** So far this week, the market capitalisation of the Shanghai stock index has risen by 0.03 percent to 29.13 trillion yuan. ** In Hong Kong, the sub-index of the Hang Seng index tracking energy shares rose 2.8 percent while the IT sector rose 2.6 percent. The top gainer on Hang Seng was CNOOC Ltd up 4.25 percent, while the biggest loser was China Overseas Land & Investment Ltd which was down 1.45 percent.

Reporting by Samuel Shen, Luoyan Liu and John Ruwitch; Editing by Gopakumar Warrier

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