December 11, 2018 / 11:56 AM
SHANGHAI, Dec 11 (Reuters) - Shares in China rebounded cautiously on Tuesday morning in thin trade as investors look to government policies to support markets and counter signs of slowing domestic growth amid a weakening of global risk appetite.
At the midday break, the Shanghai Composite Index was 0.3 percent higher at 2,591.75. Trade volumes have been relatively light, with 5.76 billion shares traded so far on the Shanghai exchange, roughly 32.6 percent of the market's 30-day moving average of 17.65 billion shares a day.
China's blue-chip CSI300 index was up 0.29 percent, with its financial sector sub-index higher by 0.32 percent, the consumer staples sector up 0.45 percent, the real estate index up 2.21 percent and the healthcare sub-index up 0.52 percent.
A Canadian provincial court weighing whether to grant bail to Huawei Technologies Co Ltd Chief Financial Officer Meng Wanzhou, who is facing possible extradition to the United States, adjourned on Monday without deciding her fate. Meng's arrest threatens to inflame an already tense China-U.S. trade relationship.
China and the United States discussed the road map for the next stage of their trade talks on Tuesday, during a telephone call between Chinese Vice Premier Liu He and U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer.
In a note, analysts at Guodu Securities highlighted continued weakness in global risk appetite following Meng's arrest, as an inverted U.S. yield curve points to a risk of recession, and as the risk of a no-deal Brexit increases.
But the analysts said the domestic market was showing some "positive changes" as government relief policies are implemented, reducing risks posed by pledged shares, and as measures to open up domestic markets, such as the Shanghai-London Stock Connect, attract long-term capital to the market. They also said the Central Economic Work Conference, typically held in mid-December, is likely to produce macroeconomic policies targeting internal and external pressures.
Chinese H-shares listed in Hong Kong fell 0.48 percent to 10,223.84, while the Hang Seng Index was down 0.11 percent at 25,723.04.
The smaller Shenzhen index was up 0.6 percent and the start-up board ChiNext Composite index was higher by 0.47 percent.
Around the region, MSCI 's Asia ex-Japan stock index was weaker by 0.14 percent while Japan's Nikkei index was down 0.29 percent.
The yuan was quoted at 6.902 per U.S. dollar, 0.11 percent firmer than the previous close of 6.9099. The currency strengthened despite a sharply lower daily fixing set by the central bank.
The largest percentage gainers in the main Shanghai Composite index were Veken Technology Co Ltd, up 10.05 percent, followed by Shaanxi Broadcast & TV Network Intermediary Group Co Ltd, gaining 10.03 percent and Anhui Xinli Finance Co Ltd, up by 10.03 percent.
The largest percentage losses in the Shanghai index were Zhejiang Langdi Group Co Ltd, down 10 percent, followed by Jiangsu Kanion Pharmaceutical Co Ltd, losing 7.06 percent and XI An Hongsheng Technology Co Ltd , down by 5.03 percent.
So far this year, the Shanghai stock index is down 21.85 percent, while China's H-share index is down 12.3 percent. Shanghai stocks have declined 0.14 percent this month.

Sumber : Reuters