Staff of Reuters 3 Minute Read* Daily quotas for HK->Shanghai Connect were used at 100%, however daily quotas for Shanghai->HK were used at -0.1%. The FTSE China A50 is up 0.3%. (Reuters) – SHANGHAI, June 30 – On Wednesday, Chinese equities rose, helped by semiconductor companies’ strong results projections, but sluggish factory activity data calmed fears of policy tightening in the world’s second-largest economy. * By the end of the morning session, the CSI300 index had risen 0.4 percent to 5,212.25, while the Shanghai Composite Index had risen 0.2 percent to 3,581.72.** Shenzhen’s start-up board ChiNext had risen 1.7 percent, while Shanghai’s tech-focused STAR50 index had up 1.8 percent. * Higher raw material costs, a lack of semiconductors, and a COVID-19 outbreak in China’s important export region of Guangdong, along with wider supply chain disruptions in Asia, dragged down June manufacturing activity to a four-month low. * According to data from the National Bureau of Statistics, China’s official manufacturing Purchasing Manager’s Index fell to 50.9 in June from 51.0 in May. It did, however, beat analysts’ expectations for a drop to 50.8 percent. In a research, Essence Securities predicted that China’s economic growth would be sluggish in the second half, implying that a neutral monetary policy with a loosening tilt would persist, and that weak growth would significantly reduce the prospects of monetary tightening. ** Shenzhen Fine Made Electronics Group Co Ltd, Kingsemi Co Ltd, Sino Wealth Electronic Ltd, and SG Micro Corp all rose between 11 and 20 percent, while the CSI all-share semiconductors & semiconductor equipment index rose 4.7 percent. ** Hutchmed China Ltd, a developer and manufacturer of cancer and immunology drugs, opened at HK$59.80 in Hong Kong, up 49.1% from the offer price. (Luoyan Liu and Andrew Galbraith contributed reporting; Subhranshu Sahu edited the piece.) Continue reading