Energy, material stocks lift China A-shares; Hong Kong slips

  • CSI300 +0.18%, SSEC +0.32%, Hang Seng index -0.24%
  • China Enterprises index HSCE rises 0.4%
  • Yuan set for best month since May

SHANGHAI, Feb 28 (Reuters) – Chinese A-shares closed higher on Monday, boosted by gains in raw material and energy firms as the Russia-Ukraine conflict lifted commodity prices, while Hong Kong’s Hang Seng slipped as the city battles a worsening COVID-19 outbreak.

** At the close, the Shanghai Composite index (.SSEC) was up 0.32% at 3,462.31, after falling as much as 0.75%.

** The blue-chip CSI300 index (.CSI300) gained 0.18% after slipping as much as 0.93%.

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** Losses in the financial sector (.CSI300FS), down 0.31%, and the real estate sector (.CSI000952), down 0.85%, were outweighed by strong gains in energy and materials shares.

** The CSI Coal Index (.CSI000820) jumped 2.72%, the A-share Resources Index (.CSI000805) gained 2.1%, and the energy sector (.CSIEN) rose 1.82%.

** Data from China’s statistics bureau showed the country’s biggest increase in total energy consumption and coal use in a decade in 2021. read more

** Defence shares (.CSI399973) gained 1.38% as Chinese investors bet on sectors likely to benefit from the worsening Ukraine conflict. read more

** Inflows into A-shares through the Stock Connect programme accelerated in the afternoon session, boosting the main indexes.

** Northbound inflows through Stock Connect totalled 7.4 billion yuan ($1.17 billion) on the day, according to Refinitiv data. (.NQUOTA.ZK), (.NQUOTA.SH)

** The smaller Shenzhen index (.SZSC) ended up 0.19% and the start-up board ChiNext Composite index (.CNT) rose 0.89%.

** In Hong Kong, the Hang Seng index (.HSI) finished down 0.24% at 22,713.02. The Hang Seng China Enterprises index (.HSCE) rose 0.4% to 8,023.93.

** Financial shares dropped, with Hong Kong Exchanges and Clearing slumping 3.18% as brokers cut price targets and on fears of stricter lockdowns amid surging COVID-19 cases in the city. read more

** Shares of index heavyweight HSBC Holdings fell 1.19%.

** The sub-index of the Hang Seng tracking energy shares (.HSCIE) rose 1.8%.

** Around the region, MSCI’s Asia ex-Japan stock index (.MIAPJ0000PUS) was weaker by 0.18%, while Japan’s Nikkei index (.N225) rose 0.19%.

** At 0700 GMT, the yuan was quoted at 6.3111 per U.S. dollar, 0.09% firmer than its previous close of 6.317.

($1 = 6.3107 Chinese yuan)

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Reporting by Andrew Galbraith; Editing by Subhranshu Sahu and Vinay Dwivedi

Our Standards: The Thomson Reuters Trust Principles.