September 27, 2016 / 4:56 AM / a year ago

China stocks shrug off surging industrial profits; HK up over 1 pct

* SSEC -0.2 pct, CSI300 0.1 pct, HSI 1.1 pct

* Markets unfazed by best industrial profit data in 3 years

* U.S. presidential debate has little immediate impact on market

* Shanghai-Hong Kong Connect will be suspended Sept 29-Oct 10

SHANGHAI, Sept 27 (Reuters) - China stocks were little changed on Tuesday as investors were reluctant to stake out fresh positions ahead of a week-long holiday despite data showing August industrial profits surged the most in three years.

China’s blue-chip CSI300 index rose 0.1 percent to 3,223.15 points by the lunch break, while the Shanghai Composite Index lost 0.2 percent to 2,975.92.

In Hong Kong, shares bounced over 1 percent, recovering much of Monday’s drop, but investors were bracing a drop in inflows from China as the Shanghai-Hong Kong Stock Connect scheme will be suspended Sept. 29-Oct. 10.

China’s markets will be closed for a week for the National Day holidays starting on Oct. 1.

The first U.S. presidential debate between Democrat Hillary Clinton and Republican Donald Trump attracted attention from the investment community, but did not appear to have had an immediate impact on the China market.

In his opening statement, Trump blamed China for currency devaluation and U.S. job losses.

“The result of the U.S. election matters. If Clinton wins, the market would be calm. If Trump wins, the market would face more uncertainty,” said Linus Yip, strategist at First Shanghai Securities Ltd, adding Trump’s apparent support for trade protectionism would harm world economy.

“But this is just the first debate. You need to continue to monitor how the debate will shape public opinions.”

Mainland investors largely ignored data showing profits earned by China’s industrial firms in August grew at the fastest pace in three years, and a move by the Asian Development Bank to increase its growth forecast for China.

Analysts say sentiment cooled after the SSEC on Monday fell below 3,000 points - viewed by some as a key psychological support level.

Property stocks rebounded sharply, but infrastructure and transportation shares dropped.

In Hong Kong, the Hang Seng index rose 1.1 percent to 23,574.49, while the Hong Kong China Enterprises Index gained 1.3 percent to 9,749.65.

Nearly all sectors rose, with financial shares leading the gains.

The suspension of the Shanghai-Hong Kong Connect might have an impact on the market’s liquidity, as “Chinese money inflows has been an important factor behind the strong rally recently.” First Shanghai’s Yip said.

Reporting by Samuel Shen and John Ruwitch; Editing by Kim Coghill

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below