China stocks close higher on stimulus hopes for smaller firms

China stocks ended higher on Tuesday on hopes that Beijing will roll out more measures to bolster the real economy. ** The blue-chip CSI300 index closed up 0.7% at 3,992.96, while the Shanghai Composite Index gained 0.7% to 2,982.68.

** Chinese Premier Li Keqiang said on Monday the government will study taking more measures to lower financing costs for smaller companies, including broad-based and "targeted" cuts in the reserve requirement ratio (RRR), lending and rediscounting. ** Chinese government bond futures edged up in early trade on Tuesday following the Premier's remarks.

** Around the region, MSCI's Asia ex-Japan stock index fell 0.13%, while Japan's Nikkei index inched up 0.04%. ** The yuan was quoted at 7.0113 per U.S. dollar, 0.02% firmer than the previous close of 7.0125.

** The largest percentage gainers on the main Shanghai Composite index were Huayi Electric Co Ltd, up 10.09%, followed by Shanghai Fudan Forward S&T Co Ltd, gaining 10.06% and Guirenniao Co Ltd, up by 10.04%. ** The largest percentage losers on the Shanghai index were ChongQing Zhengchuan Pharmaceutical Packaging Co Ltd, down 10%, followed by Lushang Health Industry Development Co Ltd, losing 6.4% and Changshu Fengfan Power Equipment Co Ltd, down by 5.87%.

** So far this year, the Shanghai stock index has gained 19.6%, while China's H-share index has risen 7.8%. ** By 0706 GMT, China's A-shares were trading at a premium of 25.58% over Hong Kong-listed H-shares.