China shares extend declines on policy support concerns

Hengan International

23/04/2019 05:45

* SSEC -0.4 pct, CSI300 flat, HSI -0.1 pct
    * Top-level meeting calls for policy "fine-tuning"
    * Easing stimulus could see sentiment swing lower - UBS
analyst

    SHANGHAI, April 23 (Reuters) - Chinese shares edged lower on
Monday, extending sharp declines hit in the previous session,
but a see-saw trade reflected investor uncertainty over how much
additional support Beijing will provide to the economy after
growth beat expectations.
 
** At the midday break, the Shanghai Composite index  .SSEC  was
down 0.35 percent at 3,203.63 points. 
 
** China's blue-chip CSI300 index  .CSI300  was down 0.03
percent, with its financial sector sub-index  .CSI300FS  higher
by 0.44 percent, the consumer staples sector  .CSI000912  up
0.93 percent, the real estate index  .CSI000952  up 1.07 percent
and the healthcare sub-index  .CSI300HC  up 0.71 percent.
 
** The CSI300 and Shanghai Composite both recorded their biggest
single-day drops since March 25 on Monday.
 
** China should fine-tune monetary policy "in a timely and
pre-emptive way based on economic growth and changes in price
situations," the official Xinhua News Agency said on Monday,
citing a top-level meeting chaired by President Xi Jinping. The
report echoed comments from the Politburo, State Council and
central bank in the past two weeks.  urn:newsml:reuters.com:*:nL3N2241JN
 
** Data released last week showed China's economy expanded at a
steady 6.4 percent pace in the first quarter, defying
expectations for a further slowdown, with industrial output,
retail sales and investment in March all growing faster than
expected following a raft of growth-boosting measures rolled out
in recent months.  urn:newsml:reuters.com:*:nL3N21Z0OK
 
** "A-shares investors tend to be more sensitive to shifts in
monetary policy tone. Easing of monetary stimulus could lead to
a sentiment swing to the downside, in our view," Gao Ting, head
of China Strategy at UBS Securities, said in a note. "On the
other hand, stronger-than-expected inflow induced by MSCI
A-share inclusion is an upside risk to the onshore market."
 
** Chinese H-shares listed in Hong Kong  .HSCE  dropped 0.45
percent to 11,715.6, while the Hang Seng Index  .HSI  edged 0.08
percent lower to 29,938.35. 
 
** The smaller Shenzhen index  .SZSC  was down 0.87 percent and
the start-up board ChiNext Composite index  .CNT  was weaker by
0.51 percent.
 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.07 percent while Japan's Nikkei
index  .N225  was down 0.03 percent.
 
** The yuan  CNY=CFXS  was quoted at 6.7128 per U.S. dollar,
0.01 percent weaker than the previous close of 6.7122. 
 
** The largest percentage gainers in the main Shanghai Composite
index were Guangdong Meiyan Jixiang Hydropower Co Ltd
 600868.SS , up 10.06 percent, followed by CTS International
Logistics Corp Ltd  603128.SS , gaining 10.05 percent and
Yangzhou Yaxing Motor Coach Co Ltd  600213.SS , up by 10.03
percent.
 
** The largest percentage losses in the Shanghai index were
Aurora Optoelectronics Co Ltd  600666.SS , down 10.02 percent,
followed by Shanghai Zhixin Electric Co Ltd  600517.SS , losing
10.01 percent and Lifan Industry Group Co Ltd  601777.SS , down
by 9.83 percent.
 
** So far this year, the Shanghai stock index climbed 28.92
percent, while China's H-share index rose 16.2 percent. Shanghai
stocks gained 4.02 percent so far this month. 
 
** The top gainers among H-shares were China Tower Corp Ltd
 0788.HK , up 3.64 percent, followed by China Life Insurance Co
Ltd  2628.HK , gaining 2.74 percent and Hengan International
Group Company Ltd  1044.HK , up by 2.22 percent.
 
** The three biggest H-shares percentage decliners were Air
China Ltd  0753.HK , which dropped 6.37 percent, Guangzhou
Automobile Group Co Ltd  2238.HK , which lost 4.8 percent and
China Vanke Co Ltd  2202.HK , which slipped 4.3 percent.
 
** In Hong Kong, the sub-index of the Hang Seng index tracking
energy shares  .HSCIE  rose 0.8 percent, while the IT sector
 .HSCIIT  climbed 0.3 percent. 
    The top gainer on the Hang Seng was WH Group Ltd  0288.HK ,
up 6.41 percent, while the biggest loser was Country Garden
Holdings Co Ltd  2007.HK , which slipped 3.71 percent.
    

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
China stock market graphics suite     http://reut.rs/1NfkoGl
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Andrew Galbraith, Editing by Sherry
Jacob-Phillips)
 ((Andrew.Galbraith@tr.com; +86 21 6104 1779; Reuters Messaging:
andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))