China stocks snap 3-day winning streak amid trade deal caution

Hengan International

18/12/2019 07:55

* Blue-chips fall 0.2%, knocked off 8-month high
    * Shanghai shares off the highest level since Sept.
    * Trump adviser insists deal 'done' as China sounds caution
    * PBOC trims repo rate; state planner rules out big infra
spending

    HONG KONG, Dec 18 (Reuters) - China shares ended a
three-session rally on Tuesday as investors sought concrete
details on the initial trade deal between Beijing and
Washington.  
    
** The Shanghai Composite index  .SSEC  closed 0.2% lower at
3,017.04, off the three-month high hit on Tuesday. The blue-chip
CSI300 index  .CSI300  also fell 0.2%, moving away from the
highest level since April hit in the previous session.    
** CSI300's financial sector sub-index  .CSI300FS  was flat, the
consumer staples sector  .CSI000912  ticked down 0.3%, while the
real estate index  .CSI000952  fell 0.5%.
** The smaller Shenzhen index  .SZSC  was flat, while the
start-up board ChiNext Composite index  .CNT  slid 0.5%.
** The so-called "phase-one" trade deal between the United
States and China has been "absolutely completed," a top White
House adviser said on Monday, adding that U.S. exports to China
will double under the agreement.  urn:newsml:reuters.com:*:nL1N28Q0M4
** Larry Kudlow's remarks came after Chinese officials
emphasized that the trade dispute has not been completely
settled.  urn:newsml:reuters.com:*:nL1N28Q0M4
** The Trump administration is finalising a set of narrow rules
to limit exports of sophisticated technology to adversaries such
as China, according to a document seen by Reuters.  urn:newsml:reuters.com:*:nL1N28R0CR
** China's central bank on Wednesday lowered the interest rate
on 14-day reverse repurchase agreements by five basis points,
having unexpectedly trimmed the seven-day benchmark last month
for the first time in more than four years.  urn:newsml:reuters.com:*:nB9N28G003
** China will take a targeted approach to boosting investment
and will not resort to massive stimulus in its infrastructure
push, the state planner said on Tuesday, as Beijing ramps up
support to stabilise its slowing economy.  urn:newsml:reuters.com:*:nL4N28R16T
** Beyond this week, however, equities will be shored by 
expectations of policy support, foreign investment inflows and
progress in the trade talks, Greater Wall Securities' analysts
wrote in a note on Wednesday.
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was pretty much flat, while Japan's Nikkei index
 .N225  fell 0.6%.
** So far this year, the Shanghai stock index is up 20.98%.
Shanghai stocks have risen over 5% this month. 
** About 24.41 billion shares have traded so far on the Shanghai
exchange. The volume traded was 29.30 billion as of the last
full trading day.
** The Shanghai stock index is above its 50-day moving average
and above its 200-day moving average.

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