China stocks rise on policy support optimism

China shares gained on Friday due to hopes of more policy support, expectations of higher foreign inflows and the containment of an outbreak of the new coronavirus in Beijing. ** In Hong Kong, shares dipped as other Asian markets wobbled on persisting worries about a fresh surge in cases of the novel coronavirus in major global economies.

China shares gained on Friday due to hopes of more policy support, expectations of higher foreign inflows and the containment of an outbreak of the new coronavirus in Beijing.

** In Hong Kong, shares dipped as other Asian markets wobbled on persisting worries about a fresh surge in cases of the novel coronavirus in major global economies.

** China's bluechip index CSI300 rose 0.7% to 4074.37 and the Shanghai Composite Index gained 0.4% to 2950.74. Shenzhen's start-up board ChiNext hit four-year highs as regulators revamped its listing system.

** Hong Kong benchmark Hang Seng Index fell 0.1% to 24448.16, while HSCE, which tracks Hong Kong-listed Chinese companies, was roughly flat at 9914.81.

** Chinese policymakers pledged that the government will maintain ample liquidity in the financial system in the second half of the year, pushing investors to look past a threat from U.S. President Donald Trump about cutting ties with China.

** Risk appetite also improved after the chief epidemiologist of China's Center for Diseases Prevention and Control said that the outbreak in Beijing had been brought under control.

** Also aiding sentiment was global index publisher FTSE Russels' plan to complete the final stage of its Phase I China A-share inclusion on Friday, which, Yuekai Securities expects, will attract about $3.6 billion of foreign inflows.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.14% and Japan's Nikkei index was up 0.62%.

** The yuan was quoted at 7.0869 per U.S. dollar, 0.02% firmer than the previous close of 7.0883.

** As of 0428 GMT, China's A-shares were trading at a premium of 25.87% over the Hong Kong-listed H-shares.