China stocks slide as factory activity shrinks, Hong Kong skids

Hong Kong and China Gas

02/01/2019 04:29

* SSEC -1.0 pct, CSI300 -1.2 pct, HSI -2.4 pct
    * China factory activity shrinks for first time in over 2
years,
2019 looks tougher 
    * FTSE China A50 -1.2 pct, BNY Mellon ADR China Select Index
-0.4
pct

    SHANGHAI, Jan 2 (Reuters) - China and Hong Kong stocks
dropped on Wednesday, starting the new year on a bearish note,
as lacklustre data from the world's second-largest economy
stoked worries about a global economic slowdown. 
    ** The CSI300 index  .CSI300  was down 1.2 percent at
2,974.67 points at the end of the morning session, while the
Shanghai Composite Index  .SSEC  lost 1 percent to 2,468.81
points. 
    ** In Hong Kong, the Hang Seng index  .HSI  dropped 2.4
percent to 25,229.88 points, while the Hong Kong China
Enterprises Index  .HSCE  lost 2.7 percent to 9,849.34.
    ** China's factory activity contracted for the first time in
over two years in December, highlighting the challenges facing
Beijing as it seeks to end a bruising trade war with Washington
and reduce the risk of a sharper economic slowdown in 2019.
 urn:newsml:reuters.com:*:nL3N1Z00VY 
    ** The official Purchasing Managers' Index (PMI) - the first
snapshot of China's economy each month - fell to 49.4 in
December, below the 50-point level that separates growth from
contraction, a National Bureau of Statistics (NBS) survey showed
on Monday.
    ** Largely dovetailing with the official survey, a private
survey showed China's factory activity contracted for the first
time in 19 months in December as domestic and export orders
continued to weaken.  urn:newsml:reuters.com:*:nS7N1O402G
    ** China's monetary policy stance has not shifted, but a
greater focus will be placed on flexible policymaking to adjust
to changes, a central bank official said, with the Chinese
economy widely expected to face more headwinds next year.
 urn:newsml:reuters.com:*:nL3N1YX2Z8   
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 1.51 percent, while Japan's Nikkei
index  .N225  slipped 0.31 percent.
    ** The yuan  CNY=CFXS  was quoted at 6.8577 per U.S. dollar,
0.22 percent firmer than the previous close of 6.873. 
    ** The largest percentage gainers in the main Shanghai
Composite index were Beijing Airport High-Tech Park Co Ltd
 600463.SS , up 10.06 percent, followed by Aerospace
Communications Holdings Co Ltd  600677.SS , gaining 10.03
percent and Eastern Communications Co Ltd  600776.SS , up by
10.03 percent.
    ** The largest percentage losses in the Shanghai index were
Kangmei Pharmaceutical Co Ltd  600518.SS , down 9.99 percent,
followed by Hubei Jumpcan Pharmaceutical Co Ltd  600566.SS ,
losing 9.36 percent and Zijin Mining Group Co Ltd  601899.SS ,
down by 8.08 percent.
    ** The top gainers among H-shares were Postal Savings Bank
of China Co Ltd  1658.HK , which rose 0.73 percent, followed by
Hengan International Group Co Ltd  1044.HK , which gained as
much as 0.88 percent and Guangzhou Automobile Group Co Ltd
 2238.HK , which climbed 1.41 percent.
    ** The three biggest H-shares percentage decliners were CSPC
Pharmaceutical Group Ltd  1093.HK , which lost 6.55 percent,
SINOPHARM GROUP CO LTD  1099.HK , which slipped 5.8 percent and
CNOOC Ltd  0883.HK , which fell 5.4 percent.
    ** As of 0403 GMT, China's A-shares were trading at a
premium of 18.76 percent over the Hong Kong-listed H-shares.

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China stock market graphics suite     http://reut.rs/1NfkoGl
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 (Reporting by Luoyan Liu and John Ruwitch, Editing by Sherry
Jacob-Phillips)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))