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China share indexes barely move, solid industry profit data shrugged off
December 27, 2016 / 5:09 AM / a year ago

China share indexes barely move, solid industry profit data shrugged off

* SSEC flat; CSI300 +0.2 pct; Hong Kong closed

* China Nov industrial profits rise 14.5 pct y/y

* Construction firms rise on infrastructure hopes

SHANGHAI, Dec 27 (Reuters) - China stocks were little changed on Tuesday morning, and data showing solid industrial profit growth in November failed to inject vigour into a lethargic market in the year’s final week.

The CSI300 index rose 0.2 percent, to 3,328.19 points at the end of the morning session, while the Shanghai Composite Index barely moved, at 3,121.67 points.

Trading volumes remained tiny, despite a fresh sign of economic improvement as China reported that industrial sector profit increased 14.5 percent from a year earlier in November.

Shares of some construction firms rose sharply on hopes China will boost infrastructure investment next year.

To sweeten infrastructure deals for private investors, China has unveiled plans to securitise assets that are part of public-private partnership (PPP) investments.

“It’s a good news to some PPP- and infrastructure-related sectors, ” said Pan Shaochang, an analyst at Dongguan Securities.

But Pan said optimism could be countered by tight liquidity toward year-end as demand for cash increased.

The property sector was also strong, up more than 1.8 percent as it got a boost from index heavyweight China Vanke Co Ltd.

Vanke, the industry bellwether, jumped more than 4.4 percent by midday. Over the past five week, the stock fell nearly one-third.

Raw material stocks gained slightly after Monday’s sharp declines, after Beijing punished officials and two steel market for breaking capacity-cutting rules, reinforcing government’s determination to cut excess capacity.

But declines in futures contract of coke, down about 3 percent by midday, dragged energy majors lower.

Reporting by Jackie Cai and John Ruwitch; Editing by Richard Borsuk

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