China stocks slip, but set to post monthly gains

China stocks fell on Friday as investors sold food & beverage stocks following slower profit growth in the third quarter, although they were on track to post monthly gains based on strength in consumer discretionary and banking stocks. ** The CSI300 index fell 0.2% to 4,761.40 at the end of the morning session, while the Shanghai Composite Index lost 0.1%, to 3,269.45.

China stocks fell on Friday as investors sold food & beverage stocks following slower profit growth in the third quarter, although they were on track to post monthly gains based on strength in consumer discretionary and banking stocks.

** The CSI300 index fell 0.2% to 4,761.40 at the end of the morning session, while the Shanghai Composite Index lost 0.1%, to 3,269.45. For the month, the CSI300 was up 3.8% and the SSEC 1.6%. ** The CSI SWS food and beverage index slumped 2.9% on Friday, with bellwether Yili tumbling 10%.

** But consumer discretionary firms provided some support after new energy vehicles' firms posted robust profits. ** China is targeting sustained and healthy economic development in the five years to 2025, with an emphasis on a higher quality of growth, the official Xinhua news agency said on Thursday, citing the ruling Communist Party's Central Committee.

** President Xi Jinping and members of the Central Committee, the largest of the ruling party's elite decision-making bodies, met behind closed doors this week to lay out the 14th five-year plan. ** From the past experience, the market would not see marked movements following such communiques without policy details, said Luo Kun, director of macro strategy center at Chasing Securities.

** Luo also said investors remained cautious ahead of the U.S. election, though he expected marginal impact on the A-share market. ** Leading the gains, the CSI300 consumer discretionary index advanced 11% in October, while heavyweight banking sector jumped 5.7%.

** Analysts expect earnings improvement in China's banking sector on the back of an economic recovery, which eases pressure on a sector with low valuations. ** China's economic rebound has been gaining momentum following the sharp COVID-19-driven downturn due to strong exports, pent-up demand and government stimulus.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)