* SSEC -0.7%, CSI300 -1.1%
* HK->Shanghai Connect daily quota used -3.8%, Shanghai->HK
quota used 2.8%
* FTSE China A50 -1.5%
BEIJING, July 16 (Reuters) - China stocks posted weekly
gains, as investors took comfort in the central bank's surprise
decision to cut the amount of cash that banks must hold as
reserves to help underpin the country's post-COVID economic
** The Shanghai Composite index closed 0.71% lower at
3,539.30 on Friday, while blue-chip CSI300 index was
down 1.1%, extending losses from midday.
** For the week, CSI300 gained 0.5%, while the SSEC added 0.43%.
** The consumer staples sector was down 1.86% for
the day, the material index fell 1.81% and the
information and technology sub-index slipped 0.22%.
** China's central banks made a surprise cut in banks' reserve
requirement ratio (RRR) last Friday, releasing around 1 trillion
yuan in long-term liquidity, lifting hopes for further policy
supports throughout the week.
** Investor sentiment was also lifted by better-than-expected
June activity data including retail and industrial output,
driven by a rebound in developed market demand coupled with the
sluggish recovery in Southeast Asian exporters.
** "For China, the economy has fully recovered and the
vaccination process is progressing rapidly," Jian Shi Cortesi,
Investment Director of Asian Equities with GAM Investments said.
** "All of these factors should translate into strong corporate
earnings growth and be positive to stock prices for the rest of
the year," she added.
** Brokerages recommended sectors with long-term growth
potential, as well as investment themes including clean energy
and self-sufficiency in key technologies such as semiconductors,
software, and Internet of Things.
** Renewable energy stocks jumped on Friday after China opened
its long-awaited national carbon emission trading scheme, with
nitrogenous fertilizer manufacturer Yunnan Yuntianhua Co
surged by 10% daily limit.
** "(But) as uncertainties about (China's) monetary policy and
sector regulation persist, (it is) likely putting pressure on
stock valuations," said Zhu Chaoping, Global Market Strategist
with J.P. Morgan Asset Management.
** The smaller Shenzhen index ended down 0.96% and the
start-up board ChiNext Composite index was weaker by
** Around the region, MSCI's Asia ex-Japan stock index
was weaker by 0.37%, while Japan's Nikkei index
closed down 0.98%.
(Reporting by Cheng Leng and Andrew Galbraith; Editing by