China stocks up despite softer than expected data; Hong Kong rebounds

By: |
Shanghai | Published: August 14, 2017 10:45:18 AM

China stocks were higher at the end of the morning session Monday following sharp falls on Friday, largely shrugging off official data indicating slowing growth in the world's second-largest economy.

China stocks, China stock market, China stocks news, China news, China stocks index, shanghai index, china stocks fallsThe Shanghai index fell 1.6 percent on Friday, its worst daily performance this year. (Reuters)

China stocks were higher at the end of the morning session Monday following sharp falls on Friday, largely shrugging off official data indicating slowing growth in the world’s second-largest economy. The CSI300 index rose 0.9 percent, to 3,679.60 points at the end of the morning session, while the Shanghai Composite Index gained 0.4 percent, to 3,222.48 points. The Shanghai index fell 1.6 percent on Friday, its worst daily performance this year. China CSI300 stock index futures for August rose 0.8 percent, to 3,668.8, 10.80 points below the current value of the underlying index. “Although the data this morning came in below expectations, there isn’t a great deal of concern in the market,” said Xiao Shijun, an analyst at Guodu Securities in Beijing. “After relatively big falls, some growth stocks may see a technical bump in the near term,” he said. On Monday, China’s statistics bureau released data showing that factory output slowed more than expected in July, while investment and retail sales also disappointed. The data may reinforce views that China’s economy is losing steam as lending costs rise and the property market cools.

But economists do not expect any hard landing, with the government keen to ensure stability ahead of a once-in-five-years Communist Party leadership reshuffle in the autumn. Aluminum Corp of China Ltd gained 0.8 percent despite data showing that China’s aluminum output fell 8.2 percent in July from a record high a month earlier.Capacity cuts have sent prices to multi-year highs. Steel producers were also higher after data showed China’s steel output rose 10.3 percent in July to a monthly record of 74.02 million tonnes. Analysts say high prices have spurred mills to boost production. However, steel prices declined in Shanghai after the Shanghai Futures Exchange moved on Friday to limit intraday rebar positions and hiked fees to combat speculative trading.

Hesteel Co Ltd rose 1.7 percent and Angang Steel Co Ltd gained 3.1 percent. The materials sub-index rose 1.3 percent. The Hang Seng index added 1.2 percent, to 27,197.76 points. The Hong Kong China Enterprises Index gained 1.2 percent, to 10,695.75. The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 127.66. A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Tata Steel rated ‘Underperform’, here is the reason
2Whirlpool rated ‘Buy’, passes GST hurdle
3Sobha Limited rated ‘Outperform’; operational performance key factor