China stocks fall as healthcare, consumer companies weigh

Guangdong Investment

06/04/2021 05:14

* SSEC -0.3%, CSI300 -0.7%

    SHANGHAI, April 6 (Reuters) - China stocks retreated on
Tuesday, pressured by healthcare and consumer companies, as
solid economic data raised worries of policy tightening. 
    ** The CSI300 index  .CSI300  fell 0.7% to 5,128.01 points
at the end of the morning session, while the Shanghai Composite
Index  .SSEC  dipped 0.3% to 3,473.32.  
    ** As of last close, the CSI300 had rebounded nearly 6% from
a recent trough hit on March 25, while SSEC had gained more than
4% in the same period.  
    ** Falling the most on Tuesday, the CSI300 healthcare index
 .CSI300HC  and CSI300 consumer discretionary index  .CSI000911 
dropped 1.8% and 1.9%, respectively. 
    ** Recent economic data has been robust, but analysts warn
that it could lead to concerns of inflation and policy
tightening. 
    ** A recovery in China's services sector picked up speed in
March as firms hired more workers and business optimism surged,
although inflationary pressures remained, a private sector
survey showed.  urn:newsml:reuters.com:*:nL4N2LZ0R0 
    ** The Caixin/Markit services Purchasing Managers' Index
(PMI) rose to 54.3, the highest since December, and well above
the 50-mark that separates growth from contraction on a monthly
basis.  
    ** If China's inflation and GDP growth data, due later this
month, far beat expectations, policy tightening worries will be
kindled, Huaan Securities said in a report.  
    ** Analysts said short-term sentiment was weighed by foreign
investors becoming net sellers via the Stock Connect last week
and as the issuance of new mutual funds slowed substantially. 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.28%, while Japan's Nikkei index
 .N225  fell 1.08%.
    ** The yuan  CNY=CFXS  was quoted at 6.5554 per U.S. dollar,
0.18% firmer than the previous close of 6.5675. 
    ** As of 0345 GMT, China's A-shares were trading at a
premium of 32.87% over the Hong Kong-listed H-shares.
    

 (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Amy
Caren Daniel)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))