China stocks rise, aided by banking shares on policy support

SHANGHAI: China stocks rose on Friday, helped by strength in banking shares, after regulators unveiled measures to help lenders replenish capital, but lingering worries over Sino-U.S. trade talks and economic health capped gains.

The blue-chip CSI300 index rose 0.8 per cent to 3,184.47, while the Shanghai Composite Index gained 0.4 per cent to 2,601.72.

China will allow insurance firms to invest in tier-2 capital bonds and perpetual bonds issued by banks, and set up a central bank bills swap to improve the liquidity of banks' perpetual bonds, policymakers said on Thursday. The move will make banking shares more attractive to investors, analysts say.


Chinese Vice Premier Liu He is due to visit the United States at the end of this month. Mixed messages came out of the White House ahead of his trip. U.S. Commerce Secretary Wilbur Ross said on Thursday the two sides were still "miles and miles" from a deal, while Treasury Secretary Steven Mnuchin said Beijing and Washington were "making a lot of progress".

The CSI300 financial sector sub-index was higher by 1.31 per cent.

The smaller Shenzhen index ended down 0.18 per cent and the start-up board ChiNext Composite index was unchanged.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.18 per cent, while Japan's Nikkei index closed up 0.97 per cent.

At 07:31 GMT, the yuan was quoted at 6.763 per U.S. dollar, 0.36 per cent firmer than the previous close of 6.7875.