* SSEC +0.1 pct, CSI300 -0.3 pct, HSI +1.0 pct
* "Minsky moment" fears overdone, used as excuse for
* China investors cautious as Beijing vows tougher
SHANGHAI, Oct 20 (Reuters) - Hong Kong shares rebounded
sharply on Friday, as the previous session's selling, triggered
by Chinese central bank governor's reference to a "Minsky
moment", was viewed by some as overdone, and triggered bargain
The benchmark Hang Seng index fell the most in two
months on Thursday, as investors were spooked by People's Bank
of China governor Zhou Xiaochuan's comments that China will fend
off risks from excessive optimism that could lead to a "Minsky
Moment". European stocks also suffered.
A Minsky Moment, named after economist Hyman Minsky, is a
sudden collapse of asset prices after a long period of growth,
sparked by debt or currency pressures.
On Friday morning, the Hang Seng index bounced 1.0
percent, to 28,435.38 points, recovering much of Thursday's 1.9
percent loss. The Hong Kong China Enterprises Index
gained 1.5 percent, to 11,531.10.
"The rebound shows the market was wrong yesterday, and some
investors merely used an excuse to take profit," said Robert Di,
founding partner of asset manger RPower Capital.
He said there could be some misreading of Zhou's remark.
"What Zhou said was an assumption, a scenario," Di said,
noting the market had interpreted it more as a present reality.
Di's view was echoed by Zhang Yidong, strategist at Chinese
brokerage Industrial Securities.
Zhou's reference to "Minsky moment" was part of his analysis
of systemic financial risk, but "it was not about China, not
about now," Zhang wrote in a report.
He added that Hong Kong stocks are still cheap relative to
equities in many other global markets, and are still worth
According to the brokerage, Thursday's correction attracted
nearly 2 billion yuan worth of net inflows from the mainland, as
Chinese investors hunted bargains among blue-chips including
Ping An, Bank of China and Tencent
Investors in Hong Kong also took comfort in overnight
firmness on Wall Street, as they pushed up almost all sectors on
Friday. The property and financial sectors,
which were among Thursday's biggest losers, both rebounded
Mainland stocks, which didn't suffer from brutal sell-offs
on Thursday, were relatively calm on Friday morning.
The CSI300 index fell 0.3 percent, to 3,920.68
points at the end of the morning session, while the Shanghai
Composite Index gained 0.1 percent, to 3,371.87 points.
Investors were circumspect after policy makers speaking on
the sidelines of the 19th Communist Party congress in Beijing
vowed to keep financial regulation tight in a bid to ward off
UBS economist Wang Tao expected Beijing to publish more
measures in the future to rein in risks in areas such as
shadowbanking, potentially slowing credit and economic growth.
(Reporting by Samuel Shen and John Ruwitch; Editing by Sam
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