September 3, 2018 / 4:35 AM / a year ago

China stocks fall on gloomy private survey, little boost from MSCI inclusion

* SSEC -0.9 pct, CSI300 -1 pct, HSI -1 pct

* Manufacturing growth at 14-month low - pvt survey

* NDRC official targets ‘haphazard’ auto investment

* MSCI adds more A-shares to EM index on Monday

SHANGHAI, Sept 3 (Reuters) - China stocks fell on Monday as a private survey showed manufacturing growth slowed to a 14-month low in August, and despite the inclusion of another tranche of Chinese stocks to index publisher MSCI’s emerging markets index.

** At the midday break, the Shanghai Composite index was down 25.59 points, or 0.94 percent, at 2,699.66. ** China’s blue-chip CSI300 index was down 1.03 percent, with its financial sector sub-index lower by 0.63 percent, the consumer staples sector down 1.24 percent, the real estate index down 1.12 percent and the healthcare sub-index down 1.36 percent. ** Chinese H-shares listed in Hong Kong fell 0.89 percent to 10,778.28, while the Hang Seng Index was down 0.95 percent at 27,623.92. ** China’s manufacturing activity grew at the slowest pace in more than a year in August, with export orders shrinking for a fifth month and employers cutting more staff, a private survey showed on Monday. ** Global index publisher MSCI Inc added another tranche of Chinese stocks to its emerging markets index on Monday, following the milestone debut inclusion in June. ** “Given recent market uncertainty driven by growth concerns and ongoing tariff speculation, we have seen pockets of value emerge in A-shares, especially in areas related to the long-term consumption theme,” said Gary Monaghan, investment director at Fidelity International. “As A-shares become a greater part of indices, we would expect greater foreign ownership of these equities over time. This will likely drive a greater focus on ESG metrics as ESG becomes increasingly important for investors and a greater determinant of where they allocate their capital.” ** The transportation sub-index was down 2.6 percent after an official at China’s state planner said on the weekend that China would strictly prevent haphazard investment and redundant development in the automobile industry. ** The smaller Shenzhen index was down 1.25 percent and the start-up board ChiNext Composite index was weaker by 0.86 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.71 percent, while Japan’s Nikkei index was down 0.68 percent . ** The yuan was quoted at 6.8356 per U.S. dollar, 0.07 percent weaker than the previous close of 6.831. ** The largest percentage gainers on the main Shanghai Composite index were Sanjiang Shopping Club Co Ltd, up 9.97 percent, followed by EGing Photovoltaic Technology Co Ltd , gaining 7.07 percent, and Dexlixi Xinjiang Transportation Co Ltd, up by 6.75 percent. ** The largest percentage losers on the Shanghai index were Youon Technology Co Ltd, down 8.8 percent, followed by Shanghai Baolong Automotive Corp, losing 8.63 percent, and Beijing Qianjing Landscape Co Ltd, down by 8.3 percent. ** So far this year, the Shanghai stock index is down 17.6 percent, while China’s H-share index is 7.1 percent lower. Shanghai stocks have declined 5.25 percent this month. ** The top gainers among H-shares were Guangdong Investment Ltd , up 0.86 percent, followed by China Telecom Corp Ltd , gaining 0.81 percent, and Postal Savings Bank of China Co Ltd, up by 0.65 percent. ** The three biggest H-shares percentage decliners were Great Wall Motor Co Ltd, which has fallen 7.04 percent, Guangzhou Automobile Group Co Ltd, which has lost 5.7 percent and Dongfeng Motor Group Co Ltd, down by 4.4 percent. ** About 5.91 billion shares have traded so far on the Shanghai exchange, roughly 44.6 percent of the market’s 30-day moving average of 13.26 billion shares a day. The volume traded was 10.98 billion as of the last full trading day. ** As of 04:26 GMT, China’s A-shares were trading at a premium of 17.93 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. ** In Hong Kong, the sub-index of the Hang Seng index tracking energy shares dipped 1.3 percent while the IT sector fell 2.7 percent. The top gainer on Hang Seng was WH Group Ltd, up 1.35 percent, while the biggest loser was Geely Automobile Holdings Ltd, which was down 6.59 percent.

Reporting by Andrew Galbraith; Editing by Subhranshu Sahu

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