China blue-chip index set to rise for 7th session; HK flats

Last Updated: Tue, Nov 29, 2016 10:20 hrs

* SSEC 0.5 pct, CSI300 1.0 pct, HSI -0.1 pct

* China rose as investors hunt for high-dividend shares

* HK dips as oil price wavers ahead of OPEC meeting

SHANGHAI, Nov 29 (Reuters) - China's blue-chip CSI300 index is on track to rise for a seventh straight day, as investors, led by insurers, bet on modestly-valued, high-dividend sector leaders, reflecting growing confidence in the economy.

Hong Kong markets dipped, however, weighed down by energy shares as oil price dipped on doubts that producer cartel OPEC would hammer out a output cut at a meeting on Wednesday.

Mainland stocks reversed early losses and ended the morning session in positive territory. The CSI300 index rose 1.0 percent, to 3,569.61 points, while the Shanghai Composite Index gained 0.5 percent, to 3,291.66 points.

The market has been propped up fresh signs that China's economy is stabilizing. A Reuters poll showed that activity in China's manufacturing sector likely held onto a modest expansionary trend this month.

After the Shanghai regulator's latest measure to calm a frothy property market an index tracking mainland real estate market opened 0.5 percent down but soon recovered and ended the morning session roughly flat.

The regulator announced late Monday an increase in the minimum required downpayment and it also tightened eligibility for buyers of first homes.

"Developers like Vanke reported good financial results and are abundant in cash, so their shares will continue to rise despite the policies," said Ren Chengde, senior analyst at Galaxy Securities in Shanghai.

"The markets are now fixated with companies with good cash flow performance. More cash means more dividends," Ren said, adding that insurers were snapping up industrial companies for the sake of higher dividends.

Anbang Insurance Group's high-profile move to increase its stake in China State Construction Engineering have sent the company's share price soaring. The company's shares added over 7 percent on Tuesday morning.

Most main sectors in China rose, with utilities and consumer staples leading the gain, as investors piled into non-cyclical shares for their stability and dividends.

Index heavyweight Inner Mongolia Yili Industrial Group Co Ltd jumped nearly 9 percent, to 17-month high. Sunshine Insurance boosted its stake in Yili to 5 percent in September, fuelling speculation that the insurer might buy more.

Industry leader Media Group Co Ltd gained more than 4 percent and climbed to a record high. Kweichow Moutai Co Ltd added nearly 2 percent.

In Hong Kong, the benchmark Hang Seng index dropped 0.1 percent, to 22,819.54 points. The Hong Kong China Enterprises Index lost 0.2 percent, to 9,859.36 points.

(Reporting by Jackie Cai and John Ruwitch; Editing by Simon Cameron-Moore)



More from Sify: