Semiconductor firms lead China stocks higher; Hong Kong down

Reuters2021-06-30

* SSEC +0.2%, CSI300 +0.4%, HSI -0.2%

* HK->Shanghai Connect daily quota used 100%, Shanghai->HK daily quota used -0.1%

* FTSE China A50 +0.3%

SHANGHAI, June 30 (Reuters) - China stocks climbed on Wednesday, aided by semiconductor firms on expectations of robust earnings, while soft factory activity data eased fears of policy tightening in the world's second-largest economy.

** The CSI300 index rose 0.4% to 5,212.25 by the end of the morning session, while the Shanghai Composite Index gained 0.2% to 3,581.72.

** Shenzhen's start-up board ChiNext added 1.7%, while Shanghai's tech-focused STAR50 index rose 1.8%.

** Growth in China's June factory activity dipped to a four-month low on higher raw material costs, a shortage of semiconductors and a COVID-19 outbreak in the major export province of Guangdong, amid wider supply chain disruptions in Asia.

** China's June official manufacturing Purchasing Manager's Index eased slightly to 50.9 versus 51.0 in May, data from the National Bureau of Statistics showed. It, however, exceeded analysts' forecast for a slowdown to 50.8.

** China's economic growth could be weak in the second half, indicating a neutral monetary policy with a loosening bias would continue, Essence Securities said in a report, adding weak growth could substantially decrease chances of monetary tightening.

** Shares in China's semiconductor firms jumped on expectations of robust earnings growth in the first half as a shortage of semiconductors pushed prices higher.

** Shenzhen Fine Made Electronics Group Co Ltd , Kingsemi Co Ltd , Sino Wealth Electronic Ltd

and SG Micro Corp rose between 11% and 20%.

** The CSI all-share semiconductors & semiconductor equipment index climbed 4.7% by the midday break.

** In Hong Kong, the Hang Seng index dropped 0.2% to 28,948.75, while the Hong Kong China Enterprises Index lost 0.4% to 10,716.92.

** Shares of oncology and immunology drug developer and maker Hutchmed China Ltd rose as high as HK$59.80 in Hong Kong debut, up 49.1% from the offer price.

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