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China stocks end firmer, investors await economic data
June 6, 2017 / 7:15 AM / 6 months ago

China stocks end firmer, investors await economic data

SHANGHAI, June 6 (Reuters) - China stocks ended higher on Tuesday, with consumer and financial shares lending support as investors pondered the impact of new regulations on initial public offerings and ahead of a flurry of economic data.

The blue-chip CSI300 index rose 0.7 percent, to 3,492.88 points, while the Shanghai Composite Index gained 0.3 percent to 3,102.13 points.

China’s economy is likely to have remained on a stable footing in May, buoyed by solid gains in trade and investment as economic ties with the United States take a positive turn and infrastructure spending cushions domestic growth.

A Reuters poll of indicators from trade and industrial output to loans and property investment, is expected to show that economic growth held up nicely into the second quarter, defying worries of a sharp slowdown.

However, sentiment was dampened after state media reported that the securities regulator would maintain a stable and firm policy regarding new listings, raising concerns among investors that the pace of IPOs would not be rolled back as expected.

“Currently, valuations of many listed companies are still quite high, in particular small caps,” said Zhang Qi, an analyst with Haitong Securities.

Expectations of more equity supply could weigh on those small-cap stocks, according to many analysts Reuters spoke to.

Most sectors gained ground, with consumer stocks leading the gains. (Reporting by Luoyan Liu and John Ruwitch; Editing by Jacqueline Wong)

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