January 10, 2019 / 7:46 AM / 10 days ago

China stocks end weaker on lean economic data

    * SSEC -0.4 pct, CSI300 -0.2 pct; SZSC -0.3 pct
    * China records lowest producer prices gains in 2 years
    * Hype over trade talks, policy support take a backseat

    HONG KONG, Jan 10 (Reuters) - Chinese shares shed earlier
gains to end lower on Thursday as worries about sluggish
economic growth sunk in, while the excitement over the
U.S.-China trade negotiations and policy support faded.

** The Shanghai Composite index         closed 0.4 percent
weaker at 2,535.10 points, while the blue-chip CSI300 index was
down by 0.2 percent.
     
** China's producer prices in December rose at their slowest
pace since September 2016 as factories confront a slowdown in
demand even as Beijing steps up policy support to bolster the
economy.             
    
** The "slowdown is in line with the wider trend, but the scale
of the fall was surprisingly big. It reflects that the Chinese
economy deteriorated really rapidly in the fourth quarter of
last year," said Steven Leung, director of sales at the
brokerage UOB Kay Hian in Hong Kong.
 
** These worries helped offset the optimism brought about by the
Chinese central bank, whose governor promised on Wednesday to
ratchet up support for the economy by improving its policy
transmission mechanism.            
 
** "The economy is obviously weak, but what's changed is that it
is now weak beyond the market's expectation. We would expect
stronger policy support to come," said Cao Xuefeng, head of
research at Huaxi Securities in Chengdu.
 
** Bullish sentiments that came on the back of the three-day
Sino-U.S. trade talks also subsided, said Leung, after "the two
sides made separate statements, and there was not a joint
declaration".             
 
** CSI 300's financial sector sub-index             closed lower
by 0.3 percent, the consumer staples sector              edged
up 0.1 percent, and the healthcare sub-index             ended
0.5 percent lower.
 
** The smaller Shenzhen index         and the start-up board
ChiNext Composite index             were weaker by 0.3 percent.
 
** Around the region, MSCI's Asia ex-Japan stock index
                was firmer by 0.2 percent, while Japan's Nikkei
index         closed down 1.3 percent.
 
** At 0703 GMT, the yuan            was quoted at 6.7915 per
U.S. dollar, 0.38 percent firmer than the previous close of
6.8175. The yuan hit its highest point in five-and-a-half
months, breaking the 6.8 per dollar barrier.             
 
** The largest percentage gainers in the main Shanghai Composite
index were Baoding Tianwei Baobian Electric Co Ltd            ,
XiAn Typical Industries Co Ltd            , and Jiangsu Sunshine
Co Ltd            , all up by 10.1 percent.
 
** The largest percentage losses in the Shanghai index were
Pengqi Technology Development Co Ltd            , which closed
down 10.1 percent, followed by ARTS Group Co Ltd            ,
which ended 10 percent lower and Pengqi Technology Development
Co Ltd            , which closed 9.9 percent lower.
 
** About 15.99 billion shares were traded on the Shanghai
exchange. The volume in the previous trading session was 19.19
billion.
 
** As of 0704 GMT, China's A-shares were trading at a
premium of 17.78 percent over the Hong Kong-listed H-shares.
          
 
** The Shanghai stock index is below its 50-day moving average
and below its 200-day moving average.

 (Reporting by Noah Sin, Editing by Sherry Jacob-Phillips)
  
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