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China stocks fall on higher bond yields, weak data; Hong Kong little changed
November 14, 2017 / 4:50 AM / 11 days ago

China stocks fall on higher bond yields, weak data; Hong Kong little changed

* HK->Shanghai Connect daily quota used -0.8 pct, Shanghai->HK daily quota used 10.6 pct

* Batch of Oct data show economy cooled further

SHANGHAI, Nov 14 (Reuters) - China’s main Shanghai stock market fell on Tuesday morning after a batch of data showed the economy cooled further last month and as Chinese treasury yields continued to creep up in a sign of tightening liquidity

By lunch time, the Shanghai index was down 15.42 points or 0.45 percent at 3,432.41.

Data on Tuesday showed that China’s economy lost steam in October, with industrial output, fixed asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution.

Sentiment was further dented by signs that liquidity in the banking system remains tight, with China’s benchmark 10-year treasury yields almost touching 4 percent, the highest level in three years.

The smaller Shenzhen index was down 0.6 percent while H-shares listed in Hong Kong fell 0.39 percent at 11,639.14.

China’s blue-chip CSI300 index was down 0.7 percent, with its financial sector sub-index off 0.48 percent, the consumer staples sector down 1.6 percent, the real estate index up 1.33 percent and healthcare sub-index down 0.78 percent.

Around the region, MSCI’s Asia ex-Japan stock index slipped 0.2 percent.

The largest percentage gainers in the main Shanghai Composite index were SJEC Corp, up 10.03 percent, followed by Hebei Hengshui Laobaigan Liquor Co Ltd gaining 10 percent and Shanghai Material Trading Co Ltd , up by 9.99 percent.

The largest percentage losses in the index were Hna Innovation Co Ltd, down 6.19 percent, followed by Hubei Wuchangyu Co Ltd losing 4.95 percent and BTG Hotels Group Co Ltd down by 4.76 percent.

So far this year, the Shanghai stock index is up 11.09 percent, while China’s H-share index is up 24.4 percent, supported by a domestic economic recovery that benefited from fiscal stimulus and a construction boom.

Shanghai stocks have risen 1.6 percent this month.

Hong Kong

In Hong Kong, the Hang Seng stock market was up 0.1 percent at 29,198.17.

The sub-index of the Hang Seng index tracking energy shares dipped 0.8 percent while the IT sector rose 0.2 percent.

The top gainers among H-shares were Air China Ltd up 2.75 percent, followed by China Shenhua Energy Co Ltd gaining 2.53 percent and Anhui Conch Cement Co Ltd up 2 percent.

The three biggest H-shares percentage decliners were PICC Property and Casualty Co Ltd which fell 2.83 percent, China Telecom Corp Ltd down 1.8 percent and China Pacific Insurance Group Co Ltd off 1.6 percent.

China’s A-shares were trading at a premium of 28.62 percent over the Hong Kong-listed H-shares.

Reporting by Samuel Shen and John Ruwitch; Editing by Shri Navaratnam

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