China stocks weaken on trade concerns, murky business outlook

Want Want China Holdings

05/12/2018 04:31

* SSEC -0.2 pct, CSI300 flat pct, HSI -1.5 pct
    * Business outlook worsens for third month
    * China commerce min says confident of agreement with U.S.
    * Trump warns of tariffs if differences not resolved

    SHANGHAI, Dec 5 (Reuters) - China's stock markets weakened
on Wednesday amid doubts whether the country will be able to
settle trade differences with the United States before the
90-day deadline expires, and as new data showed a worsening
business outlook.

** At the midday break, the Shanghai Composite index  .SSEC  was
0.2 percent down at 2,660.25 points.
 
** China's blue-chip CSI300 index  .CSI300  edged 0.04 percent
lower, with its financial sector sub-index  .CSI300FS  down by
0.24 percent and the real estate index  .CSI300REI  up 1.61
percent, rebounding from a sharp fall on Tuesday.
 
** Shares in the consumer staples sector  .CSI300CS  rose 1.1
percent, with Tencent-backed Yonghui Superstores  601933.SS 
touching a five-week high after the supermarket chain operator,
backed by Tencent  0700.HK  and JD.com  JD.O , said it is
planning a deal with a unit of Wanda Group.  urn:newsml:reuters.com:*:nL4N1YA1NA
 
** China's commerce ministry said on Wednesday that Beijing and
Washington will push forward with trade negotiations in the next
90 days and that it is confident that an agreement can be
reached, amid growing scepticism that the two sides will be able
to reach a substantive deal on a host of highly divisive issues
before the deadline.  urn:newsml:reuters.com:*:nL4N1YA08J
 
** U.S. President Donald Trump on Tuesday held out the
possibility of an extension of the 90-day trade truce with China
but warned he would revert to tariffs if the two sides could not
resolve their differences.  urn:newsml:reuters.com:*:nL1N1Y90NC
 
** China's services sector grew at its quickest pace in five
months in November due to an uptick in new orders, a private
survey released showed, although the outlook for businesses over
the next year worsened for the third month.  urn:newsml:reuters.com:*:nS7N1DB00T
 
** Chinese H-shares listed in Hong Kong  .HSCE  fell 1.35
percent to 10,760.06, while the Hang Seng Index  .HSI  slipped
1.54 percent to 26,840.05. 
 
** The smaller Shenzhen index  .SZSC  was unchanged for the day
and the start-up board ChiNext Composite index  .CHINEXTP  was
higher by 0.85 percent.
 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 1.44 percent, while Japan's Nikkei
index  .N225  edged 0.75 percent lower.
 
** The yuan  CNY=CFXS  was quoted at 6.8675 per U.S. dollar,
0.44 percent weaker than the previous close of 6.8375. 
 
** The largest percentage gainers in the main Shanghai Composite
index were Taiyuan Chemical Industry Co Ltd  600281.SS , which
rose as much as 10.05 percent, followed by Anhui Zhongyuan New
Materials Co Ltd  603527.SS , which gained 10.04 percent and
Xinhua Winshare Publishing and Media Co Ltd  601811.SS , which
gained 10.03 percent.
 
** The largest percentage losses in the Shanghai index were
Luxin Venture Capital Group Co Ltd  600783.SS , which dropped
10.02 percent, followed by Minfeng Special Paper Co Ltd
 600235.SS , which lost 10.01 percent and Zhejiang Langdi Group
Co Ltd  603726.SS , which fell 10 percent.
 
** So far this year, the Shanghai stock index is down 19.39
percent, while China's H-share index is down 6.8 percent.
Shanghai stocks have risen 3 percent this month. 
 
** The top gainers among H-shares were Huaneng Power
International Inc  0902.HK , which gained 2.2 percent, followed
by China Vanke Co Ltd  2202.HK , which climbed 1.48 percent and
Guangdong Investment Ltd  0270.HK , which rose 1.4 percent.
 
** The three biggest H-shares percentage decliners were
Guangzhou Automobile Group Co Ltd  2238.HK , which fell 5.13
percent, Great Wall Motor Co Ltd  2333.HK , which lost 3.6
percent and Dongfeng Motor Group Co Ltd  0489.HK , which slipped
3.4 percent.
 
** In Hong Kong, the sub-index of the Hang Seng index tracking
energy shares  .HSCIE , slipped as much as 2.1 percent, while
the IT sector  .HSCIIT  fell up to 2.1 percent. The top gainer
on the Hang Seng was Want Want China Holdings Ltd  0151.HK ,
which climbed 2.93 percent, while the biggest loser was Sunny
Optical Technology Group Co Ltd  2382.HK , which was down 6.70
percent.    

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China stock market graphics suite     http://reut.rs/1NfkoGl
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 (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))