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Asia, News

China stocks extend rally on upbeat survey; Hong Kong up

* SSEC 1.0%, CSI300 0.8%, HSI 0.8%

* HK->Shanghai Connect daily quota used 11.8%, Shanghai->HK daily quota used 3.5%

* FTSE China A50 +0.8%

SHANGHAI, July 3 (Reuters) – China stocks rose for a fourth straight session on Friday, on course for its best week since March last year, as an upbeat survey showed expansion in the country’s services sector.

** The Shanghai Composite index was up 1.04% at 3,122.56 by the midday break, after having hit a 14-month high during the session. The blue-chip CSI300 was up 0.78%.

** For the week so far, the SSEC gained 4.8% and the CSI300 5.4%. The blue-chip index is set for its best week since the week of March 1, 2019.

** China’s services sector expanded at the fastest pace in over a decade in June as the easing of coronavirus-related lockdown measures revised consumer demand, a private survey showed on Friday, though companies continued to shed jobs.

** Investors are also turning to traditional heavyweights with lower valuations than growth stocks, including coal, nonferrous metals, insurance and real estate companies, China Central Securities’ analyst Zhang Gang said.

** Securities shares surged as trading activity jumped and the media reported of a merger deal between leading players.

** The CSI SWS securities index rallied 2.3% and are up 11.4% this week so far.

** Chinese H-shares listed in Hong Kong rose 1.35% to 10,193.13, while the Hang Seng Index was up 0.84% at 25,336.08.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.66% while Japan’s Nikkei index was up 0.21%.

** The yuan traded flat at 7.0658 per U.S. dollar.

** As of 0423 GMT, China’s A-shares were trading at a premium of 31.21% over the Hong Kong-listed H-shares. (Reporting by Luoyan Liu and Andrew Galbraith; editing by Uttaresh.V)

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