SHANGHAI: China’s blue-chip index closed higher on Friday, following its peers in the region, on prospects of a new round of trade talks between China and the U.S., but mixed economic data weighed on the Shanghai Composite index.
The Shanghai Composite index ended down 0.2 percent at 2,681.64 points. The index is down 0.8 percent for the week, its third consecutive weekly fall.
The blue-chip CSI300 index gained 0.2 percent to 3,242.09 points at close on Friday, but was down 1.1 percent for the week.
China’s growth looks set to cool further in coming months, with a barrage of August economic data doing little to dispel views that domestic demand is softening and government support measures will take some time to kick in.
The current world trade system is not perfect and China supports reforms to it, including to the World Trade Organisation, to make it fairer and more effective, Beijing’s top diplomat said.
China will not buckle to U.S. demands in any trade negotiations, the major state-run China Daily newspaper said in an editorial on Friday, after Chinese officials welcomed an invitation from Washington for a new round of talks.
The CSI300 financial sector sub-index ended 0.19 percent higher. The consumer staples sector climbed 1.69 percent while the real estate index rose 0.66 percent and the healthcare sub-index ended 0.66 percent lower.
The smaller Shenzhen index ended down 0.78 percent and the start-up board, ChiNext Composite index, was weaker by 1.78 percent.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.26 percent while Japan’s Nikkei index added 1.2 percent.
At 07:15 GMT, the yuan was quoted at 6.8519 per U.S. dollar, 0.23 percent weaker than the previous close of 6.8363.
The largest percentage gainers in the main Shanghai Composite index were Veken Technology Co Ltd, up 10.07 percent, followed by Tonghua Grape Wine Co Ltd, up 10.05 percent, and Changchun Gas Co Ltd, up 9.98 percent.
The largest percentage losers in the Shanghai index were YanTai Yuancheng Gold Co Ltd, down 10.01 percent, followed by Zhejiang Hisun Pharmaceutical Co Ltd down 10 percent, and Aisino Corp down 9.99 percent.
So far this year, the Shanghai stock index is down 18.9 percent and the CSI300 has fallen 19.6 percent while China’s H-share index listed in Hong Kong is down 9.6 percent. Shanghai stocks have declined 1.6 percent this month.
About 10.00 billion shares were traded on the Shanghai exchange, roughly 87.7 percent of the market’s 30-day moving average of 11.40 billion shares a day.
As of 07:15 GMT, China’s A-shares were trading at a premium of 19.80 percent over the Hong Kong-listed H-shares.
The Shanghai stock index is below its 50-day and 200-day moving averages.
The price-to-earnings ratio of the Shanghai index was 11.3 as of the last full trading day while the dividend yield was 2.8 percent. - Reuters
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