China stocks edge up on signs of de-escalating Sino-US trade tensions; HK slips
The US told GE Aerospace on Thursday that it can restart jet engine shipments to China's COMAC, a source told Reuters, in a further sign of de-escalating US-Sino trade tensions that included concessions from Beijing over rare earths.
The United States has also lifted restrictions on exports to China for chip design software developers and ethane producers.
Meanwhile, China is reviewing and approving export licences for controlled items and has been informed by the US about cancellations of 'restrictive measures' against China, its commerce ministry said on Friday.
At the midday break, the Shanghai Composite index was up 0.41% at 3,475.24 points, while the blue-chip CSI300 index was up 0.41%.
The steel sector was among the top gainers in morning session, after China's top leaders pledged to step up regulation of aggressive price-cutting by Chinese companies, as the world's second-biggest economy struggles to shake off persistent deflationary pressures.
The CSI steel sub-index gained 1.14% in morning trades.
'It could be a prelude to potential supply side reform 2.0, in our view,' Citi analysts said in a note.
'We see the prolonged PPI deflation and profitability concerns as the motives this time. Steady growth so far this year has also opened room for such an initiative.'
Citi identified sectors where reform is most urgently needed, including ferrous-metal processing (mostly steel), fuel processing, chemicals, non-mineral products (including cement, glass) and metal products.
In Hong Kong, the benchmark Hang Seng Index was down 0.62% at 23,921.81 points, while the Hang Seng China Enterprises Index fell 0.42% to 8,611.76 points.
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