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China equities rise on new stock exchange plan, government support; HK up

SHANGHAI, Sept 6 (Reuters) - Chinese equities rose sharply on Monday, led by tech shares, as plans for a new stock exchange in Beijing and a slew of market-friendly rhetoric from government officials boosted sentiment. Hong Kong shares also rose.

** The CSI300 index rose 1.9% to 4,936.15 points at the end of the morning session, while the Shanghai Composite Index gained 1.0% to 3,618.31 points.

** The Hang Seng index added 0.5%, while the Hong Kong China Enterprises Index gained 0.4%.

** An index tracking major companies listed on Beijing’s New Third Board (NTB) surged more than 12% after China unveiled details over the weekend for the planned Beijing Stock Exchange, which will be based on NTB. Shanghai’s tech-focused STAR Market and Shenzhen’s start-up board ChiNext jumped over 2%.

** “We believe the new Beijing Stock Exchange (BSE) offers a reassuring message that China will continue to support technologically innovative small- and medium-size enterprises (SMEs) to tap capital markets for financing,” Citi said in a note on Monday.

** “We think the pre-planned messages from senior financial officials reaffirming the opening of financial markets and liberalization agenda are also intended to allay concerns on whether China’s capital markets are still investible for foreign financial institutions (FIs).”

** Chinese Vice Premier Liu He said the private economy must be supported and that “guidelines and policies for supporting the private economy have not changed...and will not change in the future.”

** In addition, China’s central bank and financial regulators vowed over the weekend to increase the high-level opening of the financial sector by optimising institutional arrangements and improving regulations, the official China Daily reported.

** The brokerage subindex gained 3.8%, as investors bet China’s new bourse will boost their underwriting business.

** In Hong Kong, the financials subindex and the energy subindex gained 0.6% and 0.7%, respectively.

** BYD Co Ltd jumped 5.7% and was the biggest daily gainer on the Hang Seng Index, after the carmaker tripled its sales volume of new energy vehicles in August from a year ago.

** Index heavyweights Tencent Holdings and Alibaba Group rose 3% and 0.5% respectively, while Meituan slipped 0.4%. (Reporting by Shanghai Newsroom; Editing by Devika Syamnath)

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