Main­land stocks calm ahead of long hol­i­days

Global Times - - Biz Markets -

Chi­nese main­land stocks were lit­tle changed on Thurs­day as many in­vestors took to the side­lines as they awaited third quar­ter eco­nomic data and counted down to a week-long Na­tional Day hol­i­days start­ing on Sun­day.

Traders were cau­tious amid emerg­ing signs of fad­ing eco­nomic mo­men­tum af­ter a ro­bust first half, though most an­a­lysts ex­pect the econ­omy will re­main re­silient in the short run thanks to a con­struc­tion boom.

The blue-chip CSI300 in­dex was al­most un­changed, clos­ing up 0.04 per­cent at 3,822.54 points, while the bench­mark Shang­hai Com­pos­ite In­dex was down 0.17 per­cent at 3,339.64 points.

Mixed Au­gust data have raised con­cerns that China’s eco­nomic re­cov­ery could be los­ing steam, so changes in trad­ing strate­gies could be on the cards once in­vestors have as­sessed third-quar­ter data over com­ing weeks.

“If the third-quar­ter data con­firm mar­ket fears of a slow­down, in­vestors may sell,” said Yang Hai, strate­gist at Kaiyuan Se­cu­ri­ties.

“How­ever, mar­kets could be dull be­fore and dur­ing the Party Congress, as the govern­ment has vowed to main­tain sta­bil­ity dur­ing the pe­riod,” he said, re­fer­ring to the key Party meet­ing that starts in mid-Oc­to­ber. Sec­tor per­for­mance was mixed. En­ergy, prop­erty and fi­nan­cial shares weak­ened but con­sumer shares con­tin­ued to rise sharply, on bets that the long hol­i­day will stim­u­late en­ter­tain­ment ac­tiv­i­ties and shop­ping.

Those wa­gers were played out in stocks such as Kwe­i­chow Moutai Co Ltd, a maker of Chi­nese spir­its, which rose 2.02 per­cent to a record high of 518.46 yuan ($77.73) per share.

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