China stocks soft, many sceptical of economic recovery
China stocks weakened on Wednesday despite strength in property shares, with thin trading indicating investors’ reluctance to participate days ahead of the weeklong National Day holiday that starts on Oct 1.
China’s blue-chip CSI300 index fell 0.3 percent, to 3,230.89, while the Shanghai Composite Index also lost 0.3 percent, to 2,987.86 points.
Recent economic data has shown that there are signs of recovery in China’s economy.
Industrial sector profits jumped 20 percent in August, the best showing in three years, while a Reuters poll showed manufacturing sector activity likely expanded modestly for a second straight month in September.
But many investors remain sceptical about the sustainability of a recovery that they believe has depended stimulus.
Also, many investors were not inclined to make big bets before the holiday. China’s stock market will be closed all next week.
Most sectors lost ground on Wednesday but property shares were strong, as investors bet developers will benefit from the recent surge in home prices in major cities, despite fresh curbs by local governments. on government
the decline in the Shanghai Composite Index on Wednesday the increase in industrial sector profits in August