Chinese stocks climb on the Prime Minister's commitment to growth

* Shanghai shares add 1 pct, blue chips of 1.3 pct

* Chinese PM promises growth support policy

* Substantial progress in Sino-US talks – Xinhua

HONG KONG, March 15 (Reuters) – The Chinese stock market closed higher on Friday after Chinese Premier Li Keqiang announced strong measures to boost the slowdown in economic growth. ** At closing, the Shanghai Composite Index was up 1% at 3,021.75, while the CSI300 prime index was up 1.3%. The Shanghai index rose 1.7% this week, while the CSI300 index rose 2.4%. ** The financial sector sub-index of CSI300 increased by 1.2%, the consumer staples sector by 1.3% and the health sector shares by 1%. ** The Shenzhen index, smaller, finished up 1.4% and the ChiNext Board composite index, in start-up, was up 0.8%. ** China will not let economic growth out of a reasonable range given the downward pressure on its economy, said Li Friday at a press conference marking the end of the annual meeting of the National People's Congress. ** The Chinese prime minister is committed to taking strong measures to support growth, saying the government could use tools such as reserve requirements and interest rates. ** Li added that China would reduce the value added tax (VAT) in the manufacturing and other sectors as of April 1 and social security charges from May 1. about 6.5% last year. ** But signs of economic stress have dampened stock market gains. Li's remarks came after China announced its slowest monthly growth in industrial output in 17 years and unemployment rates had risen on a month-on-month basis. ** The market expects prudent measures to support growth and not a reduction in the benchmark interest rate, said Zhang Qi, an badyst at Haitong Securities in Shanghai. "We have just gone through a few difficult years of deleveraging. I do not think there will be a complete relaxation, "he said. ** But the market could count on new support if the Sino-US trade talks come to a positive result, said Yannan Chenye, head of Chinese equity research at Harvest Global Investments, in a note. "Any market correction would be a good opportunity to accumulate Chinese stocks," said the badyst. ** Chinese Vice Premier Liu He met by phone with US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer, making further substantive progress in trade negotiations, announced Friday the Xinhua news agency. ** In the region as a whole, the ex-Japan MSCI Asia-Japan stock index strengthened 0.7%, while the Japan Nikkei index closed up 0.8% . ** So far this year, the Shanghai stock index rose 21.2% and the CSI300 rose 24.4%. ** Approximately 34.12 billion shares were traded on the Shanghai Stock Exchange. The volume of the previous trading session was $ 37.31 billion. ** The Shanghai stock index is above its 50-day moving average and above its 200-day moving average. (Noah Sin Report, edited by Subhranshu Sahu)