Financials nudge China shares higher but inflation data caps gains
** So far this year, the Shanghai stock index is up 9.6% and the CSI300 has risen 17.5%, while China's H-share index listed in Hong Kong is down 11.8%.Reuters | Beijing | Updated: 15-10-2020 10:49 IST | Created: 15-10-2020 10:29 IST
China shares ticked higher on Thursday, lifted by financials as investors continued to expect economic rebound from the COVID-19 fallout, though markets were on edge after data pointed to weak consumer inflation in the world's second-largest economy.
** At the midday break, the Shanghai Composite index was up 0.1% at 3,344.25 points. The blue-chip CSI300 index was up 0.14%. ** Financial shares led gains, climbing 1.06% on expectations of profit improvements, after new bank loans grew more than expected in November. ** However, industrial firms capped the overall rise, falling 0.64% after factory gate prices fell at a faster-than-expected pace in September and consumer inflation slowed to its weakest in 19 months, underscoring the challenges China still faces even as it slowly recovers from the pandemic. ** The smaller Shenzhen index was down 0.29%, the start-up board ChiNext Composite index fell 0.81% and Shanghai's tech-focused STAR50 index lost 1.59%. ** Chinese H-shares listed in Hong Kong fell 0.75% to 9,846.06, while the Hang Seng Index was down 1.28% at 24,350.44. ** The slump in Hong Kong shares mirrored losses around the region, as concerns about a surge in COVID-19 cases and an elusive U.S. coronavirus relief package weighed on sentiment. ** MSCI's broadest index of Asian shares outside Japan fell 0.20% while Japan's Nikkei index lost 0.63%. ** The yuan was quoted at 6.7246 per U.S. dollar, 0.16% weaker than the previous close of 6.7136. ** So far this year, the Shanghai stock index is up 9.6% and the CSI300 has risen 17.5%, while China's H-share index listed in Hong Kong is down 11.8%. Shanghai stocks have risen 3.92% this month.