China stocks shed early gains
to end lower on Monday as investors weighed the confluence of
risks in the upcoming U.S.-China trade talks, Chinese economy
and global oil prices. Financials were the outliers, anchoring
the market and steadying the major indices.
** At close, the Shanghai Composite index
was down 0.1
percent at 2,575.81. The blue-chip CSI300 index
also down 0.1 percent. Both indices had traded higher in the
morning session, but ended weaker for a third consecutive day.
** CSI300's consumer staples sector sub-index ended
down 0.6 percent, the consumer discretionary sector
closed 0.3 percent lower, and the healthcare index
was down 0.3 percent.
** The smaller Shenzhen index
and the start-up board
ChiNext Composite index both lost 0.3 percent.
** The fall was an extension of Friday's downturn, which was
caused by the double whammy of uncertainty ahead of the meeting
between the U.S. and Chinese presidents and the plunge in oil
prices, said Zhang Gang, an analyst at Central Securities in
** CSI300's energy sub-index lost 1 percent.
** "People are cautious about whether there will be an agreement
at the end of the G20 meeting," he said. "We also have the slump
in oil prices. That's where most of the pressure has come from
** Risks of trade war escalation continued to weigh on the
market. China's main goal at the G20 meeting is to get the
United States to refrain from raising the tariffs in January,
Chinese economists and academics say. However, President Xi will
not be bullied into making a bad deal, they added.
** With uncertainties still high, defensive stocks were sought
after, Zhang added. CSI300's financial sector sub-index
closed 0.3 percent higher, whereas the real estate
index closed 0.7 percent firmer.
** It was not all bad news. On Monday, China's supervisor of
state assets announced the launch of 10 billion yuan fund to
help ease pressure on cash-strapped private companies in
Shanghai. The fund invest in firms with good prospects and
** The market, however, is growing numb of such policy
announcements, said Cau Xuefeng, the Chengdu-based head of
research at Huaxi Securities, who reckons that investors will
place greater emphasis on economic fundamentals.
** "If you look at economic growth in China
, we haven't really
got anything that exciting at the moment," he said. "For share
prices to rebound, companies' profitability has to improve."
** China's economic growth
is expected to hit 6.6 percent this
year and slow to 6.3 percent in 2019 as the country struggles
with challenges relating to trade and structural reform,
economists from Beijing's Renmin University said in a report.
** The largest percentage gainers in the Shanghai Composite were
Beihai Gofar Marine Biological Industry Co Ltd,
Eastern Communications Co Ltd,and Cultural
Investment Holdings Co Ltd, all closed 10.1 percent
** The largest percentage losses in the Shanghai index
Great-Sun Foods Co Ltd, Hangzhou XZB Tech Co Ltd
, and Asia Cuanon Technology Shanghai Co Ltd
, all ended down by 10 percent.
(Reporting by Noah Sin, Editing by Sherry Jacob-Phillips)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)