China stocks slip as consumer, healthcare firms sag; Hong Kong up

China shares eased on Thursday, as consumer and healthcare stocks dragged ahead of earnings, while Beijing pledging more measures to spur a cooling economy failed to uplift sentiment.

The CSI300 index fell 0.2% to 3,865.43 at the end of the morning session, while the Shanghai Composite Index lost 0.2% to 2,935.25. ** China's state planner said on Wednesday it will implement new regulations that aim to make it easier to do business from Jan. 1, 2020. The measures said that foreign and domestic companies should be treated equally, as should all types of market entities regardless of ownership. Policy support is key to underpinning the A-share market in an earnings season when investors ponder over the implications of a bruising Sino-U.S. trade war.

China's monetary policy easing is a general trend as the country's economy slows, though Beijing's leeway would be limited in the fourth quarter by increasing inflation pressure as the consumer price index (CPI) reached 3.0% in September, Zhang Qiyao, an analyst with Guosheng Securities noted in the report. Without risks that could lead to a systemic correction or catalysts that point to a big rally, the market could remain basically rangebound in the fourth quarter, Zhang added.

Leading the decline, the CSI300 healthcare index and the CSI300 consumer staples index shed 0.8% and 0.6%, respectively, while the CSI300 banks index added 1.1%. ** In Hong Kong, stocks firmed on hopes more stimulus would come out to support the economy. The Hang Seng index added 0.5% to 26,691.11, while the Hong Kong China Enterprises Index gained 0.6% to 10,514.71. The island city government has announced more measures to bolster growth amid political protests.

Hong Kong's legislature on Wednesday formally withdrew planned legislation that would have allowed extraditions to mainland China, meeting one of five demands of pro-democracy protesters but unlikely to end months of often violent unrest. Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.29% while Japan's Nikkei index was up 0.63%.

The yuan was quoted at 7.0664 per U.S. dollar, % firmer than the previous close of 7.0667. So far this year, the Shanghai stock index is up 17.95%, while China's H-share index is up 3.2%. Shanghai stocks have risen 1.25% this month. As of 0415 GMT, China's A-shares were trading at a premium of 28.87% over the Hong Kong-listed H-shares.

Also Read: U.S. consumer prices unchanged in September

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