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China stocks flat; caution dominates solid econ data
March 14, 2017 / 7:18 AM / 9 months ago

China stocks flat; caution dominates solid econ data

SHANGHAI, March 14 (Reuters) - China stocks were largely unchanged on Tuesday, as caution from a series of global “risk events” later this week prevailed over strong Chinese economic data.

The blue-chip CSI300 index fell 0.1 percent to 3,456.69 points, while the Shanghai Composite Index added 0.1 percent to 3,239.33 points.

Investors were awaiting the outcome of the U.S. Federal Reserve’s rate-setting meeting and policy decisions by the Bank of England and Bank of Japan. The market was also keeping a close eye on the Dutch general election and shaky global oil prices.

Investors largely shrugged off positive data from the world’s second largest economy.

China’s factory output and fixed-asset investment grew 6.3 percent and 8.9 percent, respectively, in the first two months of the year, data showed on Tuesday, exceeding market expectations.

“Today’s data suggests that China’s economy remained strong at the start of 2017. But this strength remains heavily reliant on rapid investment growth that will be difficult to sustain,” said Julian Evans-Pritchard, China economist at Capital Economics.

“As such, we continue to anticipate a slowdown in economic activity in the coming quarters.”

Most sectors were little changed.

Real estate stocks advanced 1.2 percent, led by industry heavyweight China Vanke Co Ltd, after data showed China’s property sales surged despite government measures to cool the market.

Banking stocks barely moved, as Goldman Sachs updated China stocks to “overweight” with a bullish view on China’s banking sector, citing improving credit outlook and growing loan pricing power. (Reporting by Luoyan Liu and John Ruwitch; Editing by Randy Fabi)

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