July 7, 2017 / 7:15 AM / a year ago

China blue chips ease for the week, resources firms lead gains

SHANGHAI, July 7 (Reuters) - China stocks ended mixed for the week, with blue chips snapping a two-week winning streak amid worries over economic growth and rising expectations of moves toward tighter policy globally.

The blue-chip CSI300 index fell 0.1 percent, to 3,655.93 points, while the Shanghai Composite Index added 0.2 percent to 3,217.96 points.

For the week, CSI300 eased 0.3 percent, while SSEC gained 0.8 percent.

While there were some concerns that global central banks might be moving toward tighter policy, Yang Hai, an analyst at Kaiyuan Securities, said the current tightenings by the Federal Reserve and possibly the European Central Bank later would have a limited impact pact on the China market.

The mood has generally been cautious ahead of a raft of Chinese data in coming weeks, which is expected to show steady growth though government measures to rein in the housing market and debt risks are likely to drag on activity over the next few quarters.

“Slower credit growth and higher funding costs due to supervisory tightening are expected to have an effect on fixed-asset investment and activities later in the year,” economists at UBS said in a research note.

During the week, a wider quota for Hong Kong institutional investors and a cabinet paper promoting the use of commercial pension money in capital markets lifted sentiment, as those moves are expected to bring more long-term funds into the stocks market.

While some doubt the bull run in blue chips will continue amid a correction, many analysts see little risk of a major downturn in firms with solid fundamentals.

For the week, the top performing resources sector advanced 4.3 percent, posting its fifth straight week of gains, underpinned by expectations of greatly improved profitability, helped by an industry recovery and a weaker dollar.

On the other hand, the defensive consumer sector slumped 4.4 percent for the week, its worst in 1-1/2 years after a robust rally this year, as investors rotated into other sectors with relatively lower valuations.

$1 = 6.8013 Chinese yuan renminbi Reporting by Luoyan Liu and John Ruwitch; Editing by Shri Navaratnam

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