China stocks end flat on profit-booking

Reuters | | Updated on: Jan 22, 2018

China stocks ended flat as afternoon profit-taking rolled back morning gains on third-quarter growth data showing a further gradual slowdown in economic activity but no signs of a hard landing.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen was unchanged at 3,534.18, while the Shanghai Composite Index slipped 0.1 per cent to 3,386.70 points.

In the third quarter, China’s economic growth cooled to 6.9 percent, slightly better than expected but still the weakest pace since the global financial crisis, reinforcing views that policymakers will roll out more support measures.

No panic was seen among mainland investors as the slowdown had long been priced in, analysts said.

Traders said that Monday’s profit-taking was natural after the main indexes jumped roughly 6 per cent last week, amid signs that some investors tiptoed back into the market after a 40 per cent plunge in the summer.

Brokerages shares were the clear winners the recent market strength, with companies, including Western Securities , Sinolink Securities and Guoyuan Securities, rising sharply on Monday.

But many other sectors lost ground on profit-taking, reflecting concerns that the rebound could be losing steam as the economy is still struggling.

Published on October 19, 2015
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