China stocks rise on financials boost, set for weekly gains

SHANGHAI: China stocks climbed on Friday, and are on track to snap a three-week losing streak, underpinned by gains in heavyweight financial firms.

** The CSI300 index rose 1.3% to 5,221.49 points at the end of the morning session, while the Shanghai Composite Index gained 0.83% at 594.79 points.

** Financial firms led gains on Friday, with the CSI300 financials index up 1.7%.

** The CSI SWS securities index rose 3.5% by the midday break, as Guangdong Golden Dragon Development Inc , BOC International China and East Money Information Co Ltd advanced between 7.5% and 10%.

** The golden era for Chinese residents to boost equities assets has arrived, leading to a long-term upbeat cycle for securities firms, SWS Research said in a report.

** Residents' wealth migration to equities assets are accelerating as other competitive wealth products' returns continue to decline, SWS Research added.

** For the week, the CSI300 added 2.3% and the SSEC gained 2%, with both set to snap a three-week losing streak.

** The weekly gains come as Federal Reserve Chair Jerome Powell reaffirmed that the US central bank would not to raise interest rates too quickly based only on the fear of coming inflation.

** "We see declining impact from currency and commodity price moves, while near-term liquidity support by PBOC could mitigate concerns over macro weakness and rising yield expectation," Morgan Stanley analysts including Laura Wang said in a report.

** In Hong Kong, the Hang Seng index rose 1.1% to 29,210.31 points, while the Hong Kong China Enterprises Index gained 1.6% at 10,846.01.