Chinese stocks edge higher after Beijing's new measures to boost economy

Stocks in China climbed on Tuesday after Beijing unleashed fresh measures to boost economic growth, shrugging off lingering uncertainty over Sino-U.S. trade talks. ** At the midday break, the Shanghai Composite index was up 0.1 percent at 3,249.20, while the blue-chip CSI300 index rose 0.6 percent. ** CSI300's financial sector sub-index was higher by 0.5 percent, the consumer staples sector climbed 0.8 percent, the real estate index gained 3 percent and the healthcare sub-index was up 2 percent.

The smaller Shenzhen index was higher by 0.6 per cent while the start-up board ChiNext Composite index rose 0.7 percent. ** China will relax residency curbs in many of its smaller cities this year and increase infrastructure spending, the state planner said on Monday, in a fresh push to boost the urban population and revive slowing economic growth. ** The state aims to increase China's urbanisation rate by at least 1 percentage point by the end of this year. In 2018, 59.6 per cent of China's population lived in urban areas. 

U.S. officials are "not satisfied yet" about all the issues standing in the way of a deal to end the U.S.-China trade war but made progress in talks with China last week, a top White House official said on Monday. ** The two sides wrapped up the latest round of talks in Washington late last week and will be resuming discussions this week remotely. ** "The (A-share) market's foundation for upward moves remains positive," analysts at Kaiyuan Securities wrote in a note on Tuesday. "China's monetary policy and fiscal policy both continue to be active, (we) don't see the need for limiting liquidity in the short term."

Chinese equities have made gains so far this year while markets elsewhere faltered on fears of a global growth slowdown, attracting foreign inflows. ** The Shanghai stock index is up 30.3 per cent year-to-date, while China's H-share index is up 16.8 per cent in the same period. Shanghai stocks have risen 5.1 per cent this month. ** In Hong Kong, the Hang Seng Index rose 0.3 per cent to 30,169.32, its highest level since mid-June 2018, when the trade war started. H-shares gained 0.2 per cent. 

The local market was aided by U.S. equities, with the S&P 500 scoring its eight straight sessions of gains and the longest winning streak since October 2017. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.3 per cent while Japan's Nikkei index was up 0.1 per cent.

The largest percentage gainers in the main Shanghai Composite index were Nanjing Tanker Corp and Jiangsu Hongdou Industrial Co Ltd, both up 10.1 per cent, followed by Hunan Fangsheng Pharmaceutical Co Ltd, up by 10 per cent. ** As of midday, China's A-shares were trading at a premium of 25.01 per cent over the Hong Kong-listed H-shares. ** The Shanghai stock index is above its 50-day moving average and above its 200-day moving average.

(With inputs from agencies.)