* SSEC 1.2%, CSI300 1.4%, HSI 0.1%
* HK->Shanghai Connect daily quota used 3.3%, Shanghai->HK daily quota used 4.3%
* FTSE China A50 +1.3%
SHANGHAI, July 22 (Reuters) – China stocks rose on Wednesday buoyed by Beijing’s capital market reforms, recovering from a trough hit last week due to worries over policy tightening and foreign outflows.
** The CSI300 index rose 1.4% to 4,755.40 at the end of the morning session, while the Shanghai Composite Index gained 1.2%, to 3,360.78.
** Both indexes rebounded to levels before the July 16 slump, and were on track for fourth session of gains in a row.
** China revamped its Shanghai share index on Wednesday for the first time in 30 years, adding STAR Market-listed tech companies, kicking out high-risk companies and delaying inclusion of newly-listed stocks. An index tracking the STAR Board will be published after market close.
** China’s stock market is now expected to step into a new stage and it’s likely a slow bull run would kick off, as the new index could better reflect the country’s economic growth and bolster investor confidence, Hu Shaohua, an analyst with Donghai Securities, said in a report.
** China’s economic recovery so far and epidemic control efforts have been better than expected, China Central Television cited President Xi Jinping as saying in a meeting with corporate representatives.
** Leading the gains, the tech-heavy start-up board index rose 1.9% by midday.
** Tech firms remain strategic bets for investors in the long run, as Beijing pushes forward with more reforms to support its tech sector, said Liu Hongming, fund manager at Beijing-based Dingxin Huijin Asset Management Company.
** Beijing’s push for tech self-sufficiency becomes more pressing given the U.S. restrictions on its tech industry.
** The U.S. Commerce Department added to an economic blacklist on Monday 11 Chinese companies it said were implicated in human rights violations regarding China’s treatment of Uighurs in the western Xinjiang region.
** The Hang Seng index added 0.1%, to 25,655.88 points, while the Hong Kong China Enterprises Index gained 0.4%, to 10,490.56. (Reporting by Luoyan Liu and Andrew Galbraith)
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