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Hong Kong shares up on stabilising bond market, U.S. stimulus hopes

* Hang Seng index ends up 1.63%

* China Enterprises index HSCE rises 1.84%

* IT sub-index surges on gains by Tencent, Meituan

March 1 (Reuters) – Hong Kong shares rose on Monday, rebounding from the previous week’s slump, as a semblance of calm in bond markets and optimism over progress in the U.S. stimulus package helped global equities to rally. ** At the close of trade, the Hang Seng index was up 472.36 points, or 1.63%, at 29,452.57. It had dropped 3.64% on Friday. ** The Hang Seng China Enterprises index rose 1.84% to 11,453.68. ** The Hang Seng was supported by a 4.48% gain in the IT sector , on the back of a 5.21% gain by index heavyweight Tencent Holdings Ltd and a 7.88% jump by Meituan. ** Risk sentiment globally received a boost on Monday after the U.S. House of Representatives passed President Joe Biden’s $1.9 trillion coronavirus relief package early Saturday. ** Economists at Citi nevertheless raised their 12-month target for the Hang Seng to 32,000. ** “A greater mix of PRC private entities (up from 4% in 2010 to 35% in 2020) and a smaller weighting of PRC SOEs (down from 53% to 28% in the period) should translate to greater efficiency and mitigated corporate governance risk. We prefer H-shares to A-shares for more upside,” they said. ** China’s factory activity expanded at the slowest pace in nine months in February as weak overseas demand and coronavirus flare-ups weighed on output, a business survey showed.

** China’s main Shanghai Composite index closed up 1.21% at 3,551.40, while the blue-chip CSI300 index ended up 1.54%. ** Some analysts expect to see continued volatility in China’s domestic markets as investors reprice policy normalisation. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.34%, while Japan’s Nikkei index closed up 2.41%. ** The yuan was quoted at 6.4645 per U.S. dollar at 08:10 GMT, 0.06% firmer than the previous close of 6.4681. (Reporting by Andrew Galbraith; Editing by Subhranshu Sahu)

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