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Hong Kong stocks fall as trade war fears resurface; China steady

* SSEC 0.1 pct, CSI300 0.0 pct, HSI -0.4 pct

* HK->Shanghai Connect daily quota used -1.2 pct, Shanghai->HK daily quota used 7.6 pct

* FTSE China A50 +0.4 pct, BNY Mellon ADR China Select Index

+0.4 pct

SHANGHAI, March 7 (Reuters) - Hong Kong stocks weakened on Wednesday morning, as the departure of a key advocate for free trade in the White House, Gary Cohn, heightened trade war fears.

** White House economic adviser Gary Cohn, seen as a bulwark against protectionist forces within the Trump administration, said on Tuesday he was leaving.

** Cohn's resignation poured cold water on a recovery in risk appetite that followed news on Tuesday that South Korea would hold its first summit with the North in more than a decade.

** China stocks held steady by the lunchbreak, aided by banking shares rallying as regulator plans to cut lenders' bad debt buffers.

** "The (banking regulator's) move could bolster investor confidence in banks, as worries over their bad debts would gradually ebb," said Gao Ting, Head of China Strategy, UBS Securities.

** As of 0409 GMT, the Shanghai Composite index was up 4.60 points or 0.14 percent at 3,294.24.

** China's blue-chip CSI300 index was up 0.02 percent, with its financial sector sub-index higher by 0.44

percent, the consumer staples sector up 0.01 percent, the real estate index down 0.84 percent and healthcare sub-index down 0.26 percent .

** Chinese H-shares listed in Hong Kong dropped 0.46 percent to 12,254.64, while the Hang Seng Index slipped

0.35 percent to 30,403.04.

** The smaller Shenzhen index was down 0.26 percent and the start-up board ChiNext Composite index was

weaker by 0.55 percent.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.32 percent, while Japan's Nikkei

index was down 0.63 percent. ** The yuan was quoted at 6.3277 per U.S. dollar,

0.28 percent weaker than the previous close of 6.31.

** The largest percentage gainers in the main Shanghai Composite

index were Shanghai Tianchen Co Ltd , which gained

9.99 percent, followed by Shanghai Jielong Industry Group Corp

Ltd , which climbed 9.96 percent and Tibet Tourism Co Ltd that rose 9.92 percent.

** The largest percentage losses in the Shanghai index were Qingdao Tianhua Institute of Chemistry Engineering Co Ltd down 6.41 percent, followed by Zhejiang Jiahua

Energy Chemical Industry Co Ltd losing 5.04 percent and Shandong Lukang Pharmaceutical Co Ltd down by

4.84 percent.

** The top gainers among H-shares were CSPC Pharmaceutical Group

Ltd up 1.71 percent, followed by Hengan International Group Company Ltd gaining 1.39 percent and China Construction Bank Corp up by 1.25 percent.

** The three biggest H-shares percentage decliners were Air

China Ltd which has fallen 3.99 percent, Dongfeng Motor Group Co Ltd which has lost 2.9 percent and China Shenhua Energy Co Ltd down by 2.1 percent.

** About 9.97 billion shares have traded so far on the Shanghai exchange, roughly 49.2 percent of the market's 30-day moving average of 20.24 billion shares a day. The volume traded was 19.54 billion as of the last full trading day.

** As of 0409 GMT, China's A-shares were trading at a premium of 29.91 percent over the Hong Kong-listed H-shares.

** The Shanghai stock index is below its 50-day moving average and below the 200-day moving average.

** The price-to-earnings ratio of the Shanghai index was 14.99 as of the last full trading day while the dividend yield was 1.9 percent.

** So far this week, the market capitalisation of the Shanghai stock index has risen by 0.97 percent to 29.40 trillion yuan.

** In Hong Kong, the sub-index of the Hang Seng index tracking

energy shares fell 1.2 percent, while the IT sector

dipped 0.6 percent. The top gainer on Hang Seng was

Hengan International Group Co Ltd up 1.39 percent, while the biggest loser was AIA Group Ltd which was

down 2.09 percent.

(Reporting by Samuel Shen, Luoyan Liu and John Ruwitch, Editing