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China, Hong Kong stocks rise as financial stocks gain on stamp duty cut proposal

* SSEC 0.1%, CSI300 0.5%, HSI 0.1%

* HK->Shanghai Connect daily quota used 3.4%, Shanghai->HK daily quota used 1.8%

* FTSE China A50 +0.6%

May 28 (Reuters) - China stocks rose on Friday, recouping earlier losses from renewed worries over Sino-U.S. tensions, as financial firms gained after Beijing proposed a reduction in stamp duty.

** The CSI300 index rose 0.5% to 5,280.20 points at the end of the morning session, while the Shanghai Composite Index gained 0.1% to 3,589.28 points.

** The CSI300 and SSEC both fell as much as 0.6% in early morning trade, as Sino-U.S. tensions weighed.

** U.S. President Joe Biden signed an executive order on Thursday that bans U.S. entities from investing in dozens of Chinese companies with alleged ties to defence or surveillance technology sectors.

** However, gains in financial firms helped pull the market out of negative territory by midday.

** China has proposed an “appropriate reduction” to stamp duty,said a spokesperson for the Legislative Affairs Commission of the National People’s Congress Standing Committee.

** Shares in China’s brokerages firms jumped, with the CSI SWS securities index up 2% and the CSI300 financials index up 1.1%, respectively.

** Guolian Securities Co Ltd, Guosheng Financial Holding Inc, CITIC Securities Co Ltd , China Galaxy Securities Co Ltd and Haitong Securities Co Ltd climbed between 2.9% and 8.2%.

** For the week, CSI300 dropped 0.8%, set to snap a three-week winning streak, while SSEC eased 0.3%, with tepid investor reaction to China’s major birth policy shift as analysts and traders saw limited impact.

** “I believe it will have an impact on China’s longer term economic growth rather than on the stock market,” said Luo Kun, investment manager at Chasing Securities’ equities investment arm.

** “The policy would have limited impact on those couples who already have two children,” he added.

** The Hang Seng index added 0.1% to 29,007.32 points, while the Hong Kong China Enterprises Index gained 0.2% to 10,843.35. (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Ramakrishnan M.)

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