China stocks fall for 5th straight session

Reuters Shanghai | Updated on January 12, 2018


China's main indexes fell for the fifth straight session on Monday, led by tech stocks asinvestors grew gloomy about 2017 prospects following comments bythe premier and official estimates suggesting slowing economicgrowth in big cities.

The blue-chip CSI300 index was unchanged at 3,319.45 points, while the Shanghai Composite Index lost 0.3 per cent to 3,103.43 points.

The tech-heavy ChiNext Price Index, the benchmark index tracking listed start-up companies, slumped as much as 6.1 per cent in its 8th session of losses to hit a 16-month low, as faster approvals for IPOs increased the supply of equity in the market.

The start-up index closed 3.6 per cent lower, within sight oflows plumbed during the market crash in 2015.

In remarks reported by state media on Sunday, Premier LiKeqiang said China's economy will face more pressure and problems in 2017, with changes in global politics and challengesto economic rules adding to uncertainty.

Official estimates issued on Friday said economic growth insome of the largest cities was expected to have slowed in 2016 and would continue to decelerate in 2017.

Li Zheming, analyst at Datong Securities in Dalian, said market turnover remained subdued despite 2017's firm start, as investors were reluctant to buy risky assets amid concerns on the path of US interest rates this year and uncertainties under policies to be followed by Donald Trump.

Most sectors lost ground, led by properties andconsumer shares. Nearly 100 smaller-cap stocks tumbled 10 per cent, the maximum allowed.

China's Leshi Information reversed its earlier gains to close 1.1 per cent lower in volatile trading as thecompany gets fresh investment from strategic investors.

Published on January 16, 2017

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor