China: Stocks turn higher as securities firms extend rally, HK down

[SHANGHAI] China stocks recouped early losses and turned modestly higher by midday on Tuesday, led by a rebound in financials that had underpinned last week's broad market rally.

The CSI300 index rose 0.7 per cent, to 3,868.87 points by midday, while the Shanghai Composite Index gained 0.4 per cent, to 3,662.36 points.

Shares of Chinese securities brokerages extended a rally from last week after a brief correction in early trade, while investors also lapped up comments from policy makers around broader financial reforms and economic growth.

"I saw the securities in a strengthening trend of late, and the technical correction intraday was normal and temporary,"said Zhang Yanbing, an analyst at Zhenshang Securities in Shanghai, referring to early market action before the rebound.

China will deliver a slew of economic and financial reforms over the next five years and strengthen supervision of its financial system to prevent "systemic risk", governor Zhou Xiaochuan said.

The authorities are confident of achieving economic growth of around 7 per cent in 2015, Vice Finance Minister Zhu Guangyao told a press conference.

The financial services surged 1.9 per cent, with a host of securities firms including Fouder Securities and Industrial Securities jumping by a daily limit of 10 per cent by the midday break.

Shenzhen's start-up board ChiNext rose 0.9 per cent to 3,102.245. The CSI300 Telecommunication Services Index fell the most, down 1.4 per cent.

Hong Kong stocks slipped in tandem with lower regional share markets, which were shackled by concerns of higher borrowing costs in the United States and slackening global growth.

The Hang Seng index dropped 1.2 per cent, to 22,456.45 points.

The Hong Kong China Enterprises Index lost 1.2 per cent, to 10,380.17.

REUTERS