China stocks inch higher as financials gain; Hong Kong down

SHANGHAI, May 24 (Reuters) – China stocks eked out gains on Monday, helped by gains for financial firms, but caution prevailed as investors awaited key U.S.inflation readings for guidance on monetary policy.

** The CSI300 index rose 0.1% to 5,137.63 points at the end of the morning session, while the Shanghai Composite Index gained 0.2% to 3,492.04 points.

** Leading the gains, the CSI SWS securities index jumped 3%, helping push up the CSI300 financials index by 0.8%.

** Ample liquidity, falling interest rates and commodities prices, as well as China’s crackdown on cryptocurrencies, bode well for securities stocks, TF Securities said in a report.

** The brokerage noted a marked deviation between earnings growth and valuations in the sector, saying the deviation is not in line with China’s new position of the country’s capital markets.

** Investors tread carefully as they await U.S.personal consumption and inflation figures this week.

** The diary has a crowd of this week, including the influential Fed Board Governor Lael Brainard, and markets will be keen to hear if they stick to the script on being patient with policy.

** Digital currency and thinkorswim review forex robot block-chain related stocks slumped on Monday, after China vowed to crack down on bitcoin mining, sistem kerja robot forex gratis trading activities.

** HK-listed Okg Technology Holdings Ltd, an affiliate of crypto exchange OK Coin, Huobi Tech, an affiliate of crypto exchange operator Huobi and BC Technology Group slumped between 4.5% and 18.2%.

** Cryptocurrency mining operators, including Huobi Mall and BTC.TOP, are suspending their China operations after Beijing stepped up its efforts to crack down on bitcoin mining and trading.

** The Hang Seng index dropped 0.4% to 28,342.10 points, while the Hong Kong China Enterprises Index lost 0.8% to 10,614.25.

** The Hang Seng tech index and the Hang Seng materials index declined 2.2% and 2.0%, respectively.(Reporting by Luoyan Liu and David Stanway; Editing by Ramakrishnan M.)