* HSI +0.1 pct, H-shares +0.2 pct, CSI300 +1.8 pct
* Brokers, mid-sized banks lead A-share index gains
* Hotel IPO spin-off lifts New World Development
* BYD up on reported renewable-energy car subsidies
By Clement Tan and Yimou Lee
HONG KONG, May 3 (Reuters) - China shares produced their
best day in more than a week on Friday, supporting the Hong Kong
market, as investors cheered official news reports that pointed
to greater foreign investment in mainland markets.
The official Shanghai Securities News reported on Friday
that new technical regulations rolled out by the Chinese central
bank suggest that renminbi qualified foreign institutional
investors (RQFII) quota approvals may be resumed after a
The CSI300 of the leading Shanghai and Shenzhen
A-share listings closed up 1.8 percent, while the Shanghai
Composite Index rose 1.4 percent.
It was the best day since April 24 for both indexes, which
rose 1.9 percent and 1.3 percent, respectively, on the week.
Gains on Friday helped the Shanghai benchmark decisively
bounce above its 200-day moving average after closing below this
technical level on Thursday for the first time since Christmas
The Hang Seng Index inched up 0.1 percent, paring
earlier gains after testing its highest since March 13. The
China Enterprises Index of the top Chinese listings in
Hong Kong gained 0.2 percent. The indexes rose 0.6 percent and
0.1 percent on the week, respectively.
Turnover in Hong Kong faded after midday and totalled just
$7.2 billion, just below its average in the last 20 days.
Shanghai volume was at its highest since last Friday and was
almost 10 percent better than average.
"People are anticipating about 200 billion yuan of unused
RQFII quota could be deployed," said Jackson Wong, Tanrich
Securities' vice-president for equity sales.
CITIC Securities , China's largest
listed brokerage, climbed 3 percent to its highest close since
March 25 in Shanghai and 2.8 percent in Hong Kong. Its biggest
rival, Haitong Securities, jumped 4 percent in
Shanghai and 2 percent in Hong Kong.
The People's Bank of China said that custodial institutions
have five working days, up from the current one-day arrangment,
to report transactional information relating to RQFII
investments. The central bank also said that the RQFIIs should
open offshore RMB deposit accounts, the Securities Daily
Mid-sized Chinese banks and financial were the biggest
boosts to onshore indexes. In Shanghai, China Minsheng Bank
rose 2.3 percent, while insurer Ping An
Insurance rose 2.7 percent.
Hong Kong developer New World Development jumped
3.3 percent after announcing plans to spin off its hotel
properties in an initial public offering.
Beijing will release a slew of April economic data next
week, starting with trade data on Wednesday and inflation on
Thursday, with money supply and loan growth expected between May
The data could offer more clues on the likelihood of an
earnings recovery after purchasing manager index (PMI) data this
week offered more evidence that the pace of China's economic
recovery is slowing despite a boom in credit supply earlier this
Some 67 percent of the 138 China-listed companies that have
reported first-quarter earnings missed expectations, according
to Thomson Reuters StarMine. Ÿ
Warren Buffett-backed Chinese automaker BYD Co Ltd
climbed 3.6 percent in Hong Kong and 6.5
percent in Shenzhen after the official Shanghai Securities News
reported that Beijing might issue subsidies for renewable-energy
cars in the first half of this year.
Power equipment makers Dongfang Electric Corp rose
5.5 percent, while Shanghai Electric Group Co jumped
4.4 percent, both helped by an upgrade by Deutsche Bank.
"The first quarter of 2013 is the worst quarter in terms of
year-on-year earnings comparison. We expect earnings in the
subsequent quarters to return to a positive trend," DB analysts
said in a note dated May 2.
The National Development and Reform Commission and several
ministries will release their urbanisation development plan for
2012-2020 before the end of June, with implementation guidance
expected in the second half this year, the Shanghai Securities
News reported on Friday.
China State Construction gained 3.2
percent in Shanghai and 3 percent in Hong Kong.