October 16, 2018 / 7:21 AM / a year ago

China stocks end lower on lean inflation data; real estate weighs

* Shanghai stocks close weaker, blue-chip CSI300 index down

* Gains in Shanghai stocks led by Guirenniao Co Ltd and losses by Shanghai Hongda Mining Co Ltd

* China’s A-shares are at a 22.82 percent premium over H-shares

SHANGHAI, Oct 16 (Reuters) - China stocks reversed early gains to end lower on Tuesday, after data showed factory-gate inflation had cooled for a third straight month in September amid lean domestic demand, reflecting more pressure on the world’s second-biggest economy.

** The blue-chip CSI300 index ended 0.8 weaker at 3,100.97 points, while the Shanghai Composite Index also closed 0.8 percent lower at 2,546.33 points.

** Most sectors lost ground, led by real estate and material firms.

** China’s factory-gate inflation cooled for a third straight month in September amid ebbing domestic demand, pointing to more pressure on the world’s second-biggest economy as it remains locked in an intensifying trade war with the United States.

** Adding to worries was an S&P Global Ratings report that said off-balance-sheet borrowings by Chinese local governments could be as high as 40 trillion yuan ($5.78 trillion) and amount to “a debt iceberg with titanic credit risks”.

** There were also worries over the increasing tension between Saudi Arabia and the West that have fanned geopolitical concerns. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.08 percent, while Japan’s Nikkei index closed up 1.25 percent. ** At 0705 GMT, the yuan was quoted at 6.9247 per U.S. dollar, 0.09 percent weaker than previous close of 6.9185. ** The largest percentage gainers in the main Shanghai Composite index were Guirenniao Co Ltd, which ended 10.09 percent firmer, followed by Shanghai Laimu Electronics Co Ltd , which closed up 10.04 percent and YanTai Yuancheng Gold Co Ltd, which closed 10.02 percent higher. ** The largest percentage losses in the Shanghai index were Shanghai Hongda Mining Co Ltd, which ended down 10.06 percent, followed by Joincare Pharmaceutical Group Industry Co Ltd, which closed 10.05 percent weaker and Shanghai Material Trading Co Ltd, which ended 10.02 percent down. ** So far this year, the Shanghai stock index is down 23 percent, the CSI300 dropped 23.1 percent, while China’s H-share index listed in Hong Kong fell 13.3 percent. Shanghai stocks have declined 9.75 percent this month. ** As of 0706 GMT, China’s A-shares were trading at a premium of 22.82 percent over the Hong Kong-listed H-shares. ** The Shanghai stock index is below its 50-day moving average and below the 200-day moving average. ** The price-to-earnings ratio of the Shanghai index was 10.98, as of last trading day, while the dividend yield was 2.9 percent.

$1 = 6.9251 Chinese yuan Reporting by Shanghai Newsroom, Editing by Sherry Jacob-Phillips

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