China stocks reverse course to end lower; post 4th weekly gain

Guangdong Investment

27/12/2019 08:00

SHANGHAI, Dec 27 (Reuters) - China stocks gave up early
gains to close lower on Friday as losses in tech firms offset
optimism due to the rebound in November industrial profits,
though major indexes posted a fourth straight weekly gain.   
    ** The blue-chip CSI300 index  .CSI300  closed 0.1% lower at
4,022.03, while the Shanghai Composite Index  .SSEC  shed 0.1%
to 3,005.04. Both indexes rose as much as 1% during the session.
  
    ** For the week, CSI300 rose 0.1%, while SSEC was slightly
up. 
    ** Profits at industrial firms in November grew at the
fastest pace in eight months, breaking a three-month declining
streak, as production and sales quickened, but broad weakness in
domestic demand remains a risk for earnings next year.
 urn:newsml:reuters.com:*:nL4N28Z0LE 
    ** "Although the profit growth turned to positive in
November, we have to see that the current downward pressure on
the economy is still big, and the volatility and uncertainty of
profit growth still exist due to multiple factors such as market
demand and industrial prices," Zhu Hong, an official with the
statistics bureau, said in a statement released along with the
data. 
    ** For the day, the tech-heavy start-up board ChiNextP
 .CNT  slid 1.5% and snapped a three-week rising streak. 
    ** Investors needed to exercise caution as the benchmark
Shanghai index approached the 3,000-point level, a key
resistance since early-May, as the short-term economic recovery
actually was not that good, China Fortune Securities' analyst
Yan Kaiwen said.
    ** Given the robust rally in the A-share market this year,
institutional investors tended to pocket gains as the year ended
rather than increase exposure, Yan added. 
    ** Last weekend, a state fund announced plans to cut its
stakes in some tech companies, triggering a sharp correction in
the sector.  urn:newsml:reuters.com:*:nL4N28V02L 
    ** On the trade front, China said it was in close contact
with the United States on signing a "Phase 1" trade deal and
that both sides were still going through necessary procedures
before the signing.  urn:newsml:reuters.com:*:nB9N28903U   
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.69%, while Japan's Nikkei index
 .N225  fell 0.36%.
    ** The yuan  CNY=CFXS  was quoted at 6.9992 per U.S. dollar,
0.02% weaker than the previous close of 6.998.
    ** By 0716 GMT, China's A-shares were trading at a premium
of 25.17% over the Hong Kong-listed H-shares.

 (Reporting by Shanghai Newsroom; editing by Uttaresh.V)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))