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Mainland China and Hong Kong stocks edge greater as sentiment enhances

Mainland China and Hong Kong stocks edged higher on Thursday, as market sentiment enhanced after strategists from global investment homes updated their views on Chinese shares.

** HSBC stated on Thursday that its funds have actually developed considerable direct exposure to mainland China equities.

Global emerging market (GEM) funds have actually rolled back on their underweight on mainland China and turned neutral, while Asia's funds direct exposure on the marketplace is now at a seven-month high, strategists at HSBC said in a note.

** Previously this week, UBS analysts anticipate foreign investors would slowly return to China's market by means of the Stock Connect as market belief and the macro environment improve. The bank's strategists upgraded MSCI China equities to overweight. ** At the midday break, the Shanghai Composite index was up 0.17% at 3,049.90 points. ** China's blue-chip CSI300 index was up 0.24%, with its monetary sector sub-index higher by 0.59%, the customer staples sector down 0.2%, the property index up 1.07% and the healthcare sub-index up 1%. ** Chinese H-shares noted in Hong Kong increased 0.47% to 6,129.01, while the Hang Seng Index was up 0.55% at 17,295.93. ** The smaller sized Shenzhen index was up 0.45%, the start-up board ChiNext Composite index was greater by 0.33% and Shanghai's tech-focused STAR50 index was down 0.21%. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.47% while Japan's Nikkei index was down 2.01%. ** The yuan was quoted at 7.2469 per U.S. dollar, 0.01% weaker than the previous close of 7.2461. ** The biggest percentage gainers in the main Shanghai Composite index were Ninebot Ltd, up 16.94%, followed by Arctech Solar Holding Co Ltd, getting 11.81%, and Jiangsu Yabang Dyestuff Co Ltd, up by 10.21%. ** The biggest portion losers in the Shanghai index were XiAn Qujiang Cultural Tourist Co Ltd, down 10%, followed by Zhejiang Biyi Electric Home Appliance Co Ltd, losing 10%, and Zhejiang Yingfeng Technology Co Ltd, down by 9.928%.

(source: Reuters)