China stocks end lower as investors brace for weaker GDP

Sino Land

17/01/2019 07:47

* SSEC lower by 0.4 pct; CSI300 down 0.6 pct
    * GDP growth to slow to 6.3 in 2019: Reuters poll
    * Chinese premier warns of economic headwinds

    HONG KONG, Jan 17 (Reuters) - China stocks ended weaker on
Thursday amid mounting signs of sluggish economic growth and as
Chinese Premier Li Keqaing forecast a rigid year ahead.
    
** At the midday break, the Shanghai Composite index  .SSEC  was
down 0.4 percent at 2,559.64 points. 
** China's blue-chip CSI300 index  .CSI300  ended down 0.6
percent, with its financial sector sub-index  .CSI300FS  closing
0.5 percent lower, the consumer staples sector  .CSI000912 
ending down 0.2 percent, and the healthcare sub-index
 .CSI000913  closing down 0.4 percent.
** The smaller Shenzhen index  .SZSC  was down 0.9 percent and
the start-up board ChiNext Composite index  .CHINEXTP  was
weaker by 1.3 percent.
** Analysts polled by Reuters said Chinese annual GDP growth
could come down to 6.3 in 2019, and that the country likely
slowed to expanding at 6.4 percent in the last quarter of 2018,
the weakest since the financial crisis, as the Sino-U.S. trade
war cooled domestic and export demand.  urn:newsml:reuters.com:*:nL3N1ZE27G  urn:newsml:reuters.com:*:nL3N1ZB2IE
** Li Keqiang, the Chinese premier, warned of a difficult year
ahead for the Chinese economy on Wednesday, and vowed to
increase investment in public services and infrastructure,
expand consumption, to buffer the headwinds.  urn:newsml:reuters.com:*:nB9N1YV024
** To avert a cash crunch in the market, the People's Bank of
China injected a net $83 billion into the country's financial
system on Wednesday, a daily record, and added 380 billion more
yuan to the financial system on Thursday.  urn:newsml:reuters.com:*:nB9N1XN026
** The central bank made the moves after money supply data
showed several of China's key credit gauges continue to languish
around record lows, and Germany, a key trade partner with China,
reported its weaker-than-expected economic growth on Tuesday.
 urn:newsml:reuters.com:*:nL3N1ZF1D6  urn:newsml:reuters.com:*:nS8N1Z7006
** Wei Yi, an analyst at Kaiyuan Securities predicted in a memo
on Thursday that "the leadership may take more policy measures
to stimulate the economy, and the consumer sector will be the
first to benefit from policy."
** However, Zhang Gang, a Shanghai-based analyst with China
Central Securities, urged caution as "it will take time for the
stimulus to be effective."
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.2 percent, and Japan's Nikkei
index  .N225  closed down 0.2 percent.
** The largest percentage gainers in the main Shanghai Composite
index were Wintime Energy Co Ltd  600157.SS , which ended 10.26
percent firmer, followed by Sichuan Hongda Co Ltd  600331.SS ,
which ended 10.14 percent higher and Triumph Science &
Technology Co Ltd  600552.SS , up by 10.08 percent.
** The largest percentage losses in the Shanghai index were
Leysen Jewellery Inc  603900.SS , down 9.9 percent, followed by
Nanjing OLO Home Furnishing Co Ltd  603326.SS , losing 7.1
percent and Delixi Xinjiang Transportation Co Ltd  603032.SS ,
down by 6.3 percent.
** About 16.25 billion shares have traded so far on the Shanghai
exchange. The volume traded was 14.93 billion, as of last
trading day.
** The Shanghai stock index is below its 50-day moving average
and below its 200-day moving average.

 (Reporting by Noah Sin, Editing by Sherry Jacob-Phillips)
 ((noah.sin@thomsonreuters.com; Reuters Messaging:
noah.sin.thomsonreuters.com@reuters.net))