November 23, 2016 / 7:12 AM / in 2 years

China stocks largely unchanged, investors prefer banking, property

SHANGHAI, Nov 23 (Reuters) - China stocks barely moved on Wednesday, consolidating recent gains with lower-valuation targets in banking and properties sectors still preferred by investors.

The blue-chip CSI300 index rose 0.2 percent, to 3,474.73 points , while the Shanghai Composite Index lost 0.2 percent to 3,241.14 points.

Both indexes hit their highest levels since early January, and are in a technical upward trend, having broken out of a trading range that lasted for eight months.

The strength was partly helped by Wall Street’s record run, and a perception that the United States’ likely withdrawal from an Asia-Pacific free trade area would allow China to play a bigger role in the region.

U.S. President-elect Donald Trump has served notice that he intends to withdraw from the Trans-Pacific Partnership (TPP) once he is inaugurated.

China’s property sector closed 1.3 percent higher, on news that China Evergrande Group had bought another 551.96 million Shenzhen-traded Vanke shares in recent months, doubling its stake in the developer to 10 percent.

The purchase reinforces the view that modestly-priced property stocks are still worth investing, despite Beijing’s home purchase restrictions.

Sectors were mixed. Gains were led by banks and properties, while infrastructure and energy shares took a breather, pointing to signs of sector “rotation”. (Reporting by Luoyan Liu and John Ruwitch; Editing by Shri Navaratnam)

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