BUSINESS China stocks slightly up as Party Congress closes


China stocks slightly up as Party Congress closes

Samuel Shen and John Ruwitc | Reuters

03:46, October 25, 2017

China stocks edged up sightly on Tuesday morning, with investors shifting their attention back to economic fundamentals as the Communist Party’s milestone 19th congress comes to an end.

Roughly 100 Shanghai-listed companies have disclosed third-quarter earnings, with combined net profit jumping 47 percent from a year earlier, according to the official Shanghai Securities News.

The blue-chip CSI300 index rose 0.5 percent to 3,951.78 points at the end of the morning session, while the Shanghai Composite Index gained 0.1 percent to 3,383.24 points.

“Demand growth at ... materials producers and users was generally stable in September,” brokerage CLSA wrote.

“Manufacturing demand helped offset weaker property demand, a trend that will continue in the fourth quarter.”

Trading in China A-shares has been generally calm during the party congress, which ends on Tuesday.

President Xi Jinping presented a plan to guide China’s development until 2050, ushering in a “new era”.

Sector performance was mixed on Tuesday.

Brokerage and insurance shares rose on expectations of robust quarterly growth, but interest in green-tech stocks and port operators receded as profit-taking set in.


Hong Kong stocks were little changed.

The Hang Seng index was flat at 28,315.43 points, while the Hong Kong China Enterprises Index gained 0.1 percent, to 11,501.54.

Property shares rebounded over 1 percent as some investors sought bargains following recent sell-offs.

IT shares sagged, with an index tracking the sector dipping 0.2 percent.

Financial Secretary Paul Chan has asked regulators to review proposals for a new trading board for companies with dual-class share structures, a sign that the proposal may be dropped in favour of allowing them to be listed on the existing board. ($1 = 6.6270 Chinese yuan renminbi)

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