China stocks weaken after disappointing consumer spending data
Corrects paragraph 5 to say retail sales grew by 3%, not 3.3%
By Jiaxing Li
Hong Kong, Dec 16 (Reuters) -Chinese stocks fell on Monday after data showed unexpected weakness in consumer spending, while investors banked on more policy support to shore up weak growth.
** At the midday break, China's blue-chip CSI300 index .CSI300 declined 0.37%, adding to the 1% retreat last week. The Shanghai Composite index .SSEC added 0.1% at 3,395.11 points.
** The consumer staples sector .CSI000912 declined 1.04%, the real estate index .CSI000952 lost 1.41% and the healthcare sub-index .CSI300HC weakened 0.94%.
** The Hang Seng Index .HSI in Hong Kong lost 0.57% to 19,856.91.
** Data released on Monday showed China's consumption slowed more than expected as the impact of the stimulus has yet to kick in. Retail sales grew by just 3% last month, much slower than the 4.8% rise seen in October and economists' forecast of 4.6%. ** Industrial output grew 5.4% in November year-on-year, roughly the level seen in October.
** This reinforced the disappointing credit data released over the weekend, which showed that new bank lending in China rose by far less than expected in November as loan demand remained muted despite the central bank stepping up support for the economy.
** Still, the Politburo's year-end meeting strengthened the wording on monetary policy to "moderately accommodative" and the annual Central Economic Work Conference mentioned that rate cuts should be implemented at the proper time, suggesting Beijing is set to stay accommodative to address growth risks, Nomura said in a note to clients.
** The People's Bank of China (PBOC) could deliver a 50-basis-point reserve requirement ratio cut before the end of the year, Nomura said.
** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.20% while Japan's Nikkei index .N225 was down 0.18%.
** The yuan CNY=CFXS was quoted at 7.2798 per U.S. dollar, 0.09% weaker than the previous close of 7.2731.
Reporting by Hong Kong Newsroom; Editing by Mrigank Dhaniwala
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
