December 9, 2016 / 7:33 AM / 2 years ago

China's blue-chip index up on surge in producer prices, but down for the week

SHANGHAI, Dec 9 (Reuters) - China’s blue-chip index ended higher on Friday, thanks to better-than-expected inflation data pointing to signs of a stabilising economy, but it snapped an eight-week winning streak after a top regulator warned against “barbaric” takeover deals.

For the day, the blue-chip CSI300 index rose 0.7 percent, to 3,493.70 points, while the Shanghai Composite Index gained 0.5 percent to 3,232.88 points.

For the week, CSI300 was down 1 percent to end an eight-week winning streak, while SSEC slipped 0.3 percent.

Heavyweight blue-chips led indexes higher, after data showed China’s producer prices rose at the fastest pace in more than five years in November as prices of coal, steel and building materials soared.

Consumer inflation also picked up more than expected to 2.3 percent from a year earlier, the highest since April, due to higher food prices.

Most sectors gained ground, led by banks and infrastructure, while consumer stocks and healthcare lagged behind.

In the first week of Shenzhen-Hong Kong stock connect, Shenzhen shares dropped 0.7 percent, as the recent slump in cash-strapped LeEco curbed investor appetite for growth stocks in the tech-heavy market.

Shares in LeEco lost 7.8 percent on December 6, the last session before trade was halted pending an announcement, to their lowest in nearly 15 months. The stock has tumbled 39 percent year to date. (Reporting by Luoyan Liu and John Ruwitch; Editing by Eric Meijer & Shri Navaratnam)

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