Staff of Reuters 3 Minute Read* Consumer companies drive A-share gains* Export data shows global demand is recovering* Technology boosts Tencent’s stock soars after the acceptance of the Sougou merger on the Hang Seng. (Reuters) – SHANGHAI, July 13 – Shanghai stocks gained on Tuesday, boosted by high gains in consumer staples companies, as new data revealed that China’s exports grew at a much faster-than-expected rate in June, owing to improving global demand. * China’s June exports grew significantly faster than expected, and import growth also exceeded expectations, according to customs figures released on Tuesday. * The Shanghai Composite index was up 0.24 percent at 3,556.27 points at lunchtime. At the lunch break, China’s blue-chip CSI300 index was down 0.05 percent, after surging 1.25 percent the day before on a central bank statement that it would decrease banks’ reserve requirement ratios (RRR). * A former People’s Bank of China official said in a commentary on Tuesday that the RRR decrease might assist authorities deal with swings in US monetary policy and relieve potential downward pressure on the yuan, but that China’s recovery remains uneven. * The consumer staples sector of the CSI increased by 1.75 percent, while the real estate index increased by 0.4 percent. * Foreign investors were net buys on the day, according to Refinitiv data, with Northbound Stock Connect flows totaling 4.257 billion yuan ($658.53 million) by midday. ** Tech firms in Hong Kong drove gains, with the Hang Seng Tech index rising 2.72 percent after China’s antitrust regulator approved Tencent Holdings Ltd’s plan to take the country’s No. 3 search engine Sogou Inc private in a $3 billion deal on Tuesday. (Andrew Galbraith contributed reporting, and Shailesh Kuber edited the piece.) )/n
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