SHANGHAI, May 17 (Reuters) - China stocks ended higher on
Tuesday, as Shanghai achieved a key COVID-19-related milestone
required to ease restrictions, while tech giants and Hong Kong
shares logged the biggest jump in six weeks following reports
about a meeting by a top political consultative body to promote
the digital economy.
Both internet firms listed in Hong Kong and the
Hang Seng benchmark surged the most since April 29, when
authorities vowed at the top-level Politburo meeting to step up
policy support to stabilise the economy and financial markets.
** The blue-chip CSI300 index ended 1.3% higher at
4,005.89, while the Shanghai Composite Index gained 0.7%
to 3,093.70 points.
** The Hang Seng index rose 3.3% to 20,602.52, while
the China Enterprises Index gained 3.7% to 7,076.80
points.
** Shanghai reported a long-awaited milestone of three
straight days with no new COVID-19 cases outside quarantine
zones the "zero COVID" status. A nationwide caseload also
declined, with 1,100 new cases reported on Monday, down from
1,227 infections on Sunday.
** Shanghai plans to resume outdoor activities in stages,
with most restrictions on movement remaining in place until May
21. The lockdown is likely to be lifted by June.
** "The good news is the headline COVID-19 case number has
been falling," Nomura wrote in a note, but "we are not at a
turning point yet."
** "The outlook for economic fundamentals and most financial
assets in coming months will be largely determined by Beijing's
stance on its zero-COVID strategy rather than the number of
daily cases."
** China's state planner will strengthen support for
manufacturers, the service sector and small firms, it said on
Tuesday, as the country's retail and factory activity fell
sharply in April due to wide lockdowns.
** Semiconductors and new energy firms
gained 3.6% each, and automobiles
surged 4.2%.
** Chinese Vice-Premier Liu He is scheduled to speak at a
Tuesday meeting with tech executives that has been convened by
the country's top political consultative body to promote the
development of the digital economy, sources told Reuters.
** The meeting is being closely watched for remarks by Liu
and others for clues as to how far Chinese authorities will go
in easing a regulatory crackdown on the tech sector which has
been going on since late 2020.
** J.P. Morgan analysts upgraded some Chinese internet
companies on Monday and expect "significant uncertainties" faced
by the sector to abate following recent favourable regulatory
announcements.
** The Hang Seng Tech Index climbed 5.8%, with
index heavyweights Alibaba Group, Tencent Holdings
and Meituan up between 5.2% and 7%.
(Reporting by Shanghai Newsroom; editing by Uttaresh.V and
Krishna Chandra Eluri)