China stocks dip amid divergent views over growth prospects

China shares ended down on Tuesday after three sessions of gains as investors fretted over slower growth in the world's second-largest economy and the impact of the Sino-U.S. trade war, even as fresh data highlighted Beijing's efforts to boost spending. ** The blue-chip CSI300 index ended down 0.5% at 3,806.84, while the Shanghai Composite Index lost 0.2% to 2,937.62 points.

** Data on Monday showed China's economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years. However, June activity data beat expectations, with a pick-up in investment in particular, suggesting earlier stimulus measures are finally starting to kick in. ** Economists diverge in their forecast for China growth. UBS maintains its 2019 China GDP forecast of 6.2%, citing "resilience" in China's economy, while seeing only "modest additional easing".

** Analysts at Nomura, however, urged caution, saying "we see no strong signals that China's economy bottomed out in June." Even if second-half activity levels out, a growing number of economists are forecasting growth will drop into the upper 5-percent range in 2020. ** The CSI300 financial sector sub-index was lower by 0.35%, the consumer staples sector down 1.29%, the real estate index up 1.03% and the healthcare sub-index ended down 0.88%. ** The smaller Shenzhen index ended unchanged for the session and the start-up board ChiNext Composite index was weaker by 0.142%. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.14%, while Japan's Nikkei index closed down 0.69%. ** At 0745 GMT, the yuan was quoted at 6.877 per U.S. dollar, 0.01% firmer than the previous close of 6.8775. ** The largest percentage gainers in the main Shanghai Composite index were China Satellite Communications Co Ltd, which closed up 10.04%, followed by Hangzhou TianMuShan Pharmaceutical Enterprise Co Ltd, gaining 9.99% and Jiangsu Xinri E-Vehicle Co Ltd, up by 9.98%. ** The largest percentage losses in the Shanghai index were Beijing Xinwei Technology Group Co Ltd, which closed down 5.01%, followed by Jiangsu Fengshan Group Co Ltd losing 5% and BanBao Co Ltd, which ended 4.91% weaker.

Also Read: Cipla forms JV with Jiangsu Acebright for respiratory medicines in China