Stocks end flat after robust growth outlook

Chinese mainland stocks were flat on Monday in muted response to the central bank’s strong second-half growth outlook.

The blue-chip CSI300 index fell 0.19 percent to 3,913.45 points, while the Shanghai Composite Index lost 0.36 percent to 3,378.47 points.

Central bank governor Zhou Xiaochuan said the economy was expected to grow 7 percent in the second half of this year, accelerating from the first six months and defying widespread expectations for a slowdown.

His growth forecast followed robust lending and inflation data for September that already countered expectations of gradual cooling in the economy in the latter part of the year.

Chen Xiaopeng, a Shenzhen-based strategist at Sealand Securities, said the market would likely remain highly stable in the near term.

“There’s limited room for stocks to fall due to the [key meeting to be held Wednesday], and there’s not much catalyst on the upside either,” Chen said.

But he warned of the risk of liquidity tightening and economic slowdown next year, arguing that encouraging economic data released recently had been fully priced in.

The tech-heavy start-up board index ChiNext slumped 2.25 percent, posting its worst day in three months, as investors retreated after lacklustre profit forecasts by big-name tech plays.

Wangsu Science and Technology dived the maximum allowed 10 percent to a seven-week low after predicting a big fall in net profit in the first nine months.