China stocks flat as investors hedge their faith in economy

Sino Land

03/01/2019 04:33

* SSEC unchanged, CSI300 -0.1 pct; HSI -0.3 pct
    * Liquidity support for small businesses amid weaker macro
data
    * Apple Inc suppliers tremble after company cuts forecast

    HONG KONG, Jan 3 (Reuters) - Chinese shares were little
changed on Thursday as the market dithered between worrying
about weaker economic growth and betting on policy support to
buffer that slowdown.
** The major indices hovered around Wednesday's closing levels
in late morning trade, as worries about economic growth and
expectations of policy support pulled the market in opposite
directions.
** The People's Bank of China said on Wednesday evening that it
has relaxed its conditions on targeted reserve requirement cuts
to benefit more small firms. The move came after China reported
its first factory activity contraction in over two years in
December.  urn:newsml:reuters.com:*:nL3N1Z2297 urn:newsml:reuters.com:*:nL3N1Z00VY
** The Shanghai Composite index  .SSEC  was flat at 2,465.36
while the blue-chip CSI300 index  .CSI300  inched down just shy
of 0.1 percent.
** CSI 300's financial sector sub-index  .CSI300FS  was higher
by 1 percent, while the energy index  .CSI000908  climbed close
to 0.1 percent, but telecoms shares  .CSI000994  lost 2 percent,
and consumer staples index slid 1.6 percent.
** Chinese H-shares listed in Hong Kong  .HSCE  were lower by
just 0.1 percent, while the Hang Seng Index  .HSI  eased less
than 0.3 percent to 25,057.76.
** The smaller Shenzhen index  .SZSC  and the start-up board
ChiNext Composite index  .CHINEXTP  softened by 0.3 percent.
** Apple Inc  AAPL.O  made a rare cut to its quarterly sales
forecast on Wednesday, and, for the first time since the iPhone
was launched in 2007, issued a warning on its revenue guidance
ahead of releasing quarterly results.  urn:newsml:reuters.com:*:nL3N1Z236Y
** Apple suppliers in Asia suffered in early trade.
 urn:newsml:reuters.com:*:nL3N1Z300L. The Hang Seng's sub-index tracking I.T. hardware
makers  .HSITHI  shed 1.9 percent.
** Although "there is some impact in Apple concept stocks, most
people care more about macro data," said Zhang Gang, a
Shanghai-based analyst at Central Securities. "Now people are
focusing on the policies that may buffer slower economic
growth."
** Shares of securities companies  .CSI399707 , which do well
when share prices are expected to jump, rallied 2.6 percent in
morning trade. This could foreshadow a wider rebound in A-shares
in the coming months. "If the market warms up this year, these
brokerages will benefit first," Zhang added.
** Jim McCafferty, head of equity research, Asia ex-Japan at
Nomura, also noted that this year may be less gloomy than the
last. "The Chinese market, having delivered a dismal 2018, is
one of the least expensive markets globally," he said.
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 0.4 percent while Japan's Nikkei
index  .N225  was down 0.3 percent.
** At 04:07 GMT, the yuan  CNY=CFXS  was quoted at 6.8760 per
U.S. dollar, 0.2 percent weaker than the previous close of
6.8620.
** The largest percentage gainers in the main Shanghai Composite
index were Pengqi Technology Development Co Ltd  600614.SS , up
10.1 percent, followed by Wuxi New Hongtai Electrical Technology
Co Ltd  603016.SS  and Changshu Fengfan Power Equipment Co Ltd
 601700.SS , both up by 10 percent.
** The largest percentage losses in the Shanghai index were
Thalys Medical Technology Inc  603716.SS , Kangmei
Pharmaceutical Co Ltd  600518.SS  and  Ribo Fashion Group Co Ltd
 603196.SS , all down by 10 percent.
** In Hong Knog, the top gainer on the Hang Seng was Sino Land
Co Ltd  0083.HK , up almost 4 percent, while the biggest loser
was Geely Automobile Holdings Ltd  0175.HK , down 8.3 percent.

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China stock market graphics suite     http://reut.rs/1NfkoGl
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 (Reporting by Noah Sin; additional reporting by Andrew
Galbraith in Shanghai; Editing by Gopakumar Warrier)
 ((noah.sin@thomsonreuters.com; Reuters Messaging:
noah.sin.thomsonreuters.com@reuters.net))