China stocks end higher, but weak sentiment limits gains

Business Tuesday 15/August/2017 12:15 PM
By: Times News Service
China stocks end higher, but weak sentiment limits gains

Shanghai: Chinese shares closed higher on Tuesday, but weakening sentiment ate away at gains from the morning session, even as stronger profits at commercial banks helped to support banking shares.
The blue-chip CSI300 index rose 0.3 per cent, to 3,706.06 points, while the Shanghai Composite Index gained 0.4 per cent, to 3,251.26 points.
China CSI300 stock index futures for August rose 0.3 per cent, to 3,694.4, 11.80 points below the current value of the underlying index.
"We saw a strong rally yesterday and this continued in the morning session, but there aren't stand-out factors supporting further strong gains," said Wang Jun, an analyst at First Capital Securities.
The weak gains followed news that US President Donald Trump had authorised an inquiry into China's alleged theft of intellectual property in the first direct trade measure by his administration against Beijing, but the move, which is unlikely to prompt near-term change, did not appear to be a factor in the day's trading in China.
"Regarding this news, there won't be a noticeable effect on Chinese stock markets," Wang said.
Concerns over tensions between the United States and North Korea, which led to declines in global markets last week, have been less of a factor this week and have continued to wane as North Korea's leader delayed a decision on firing missiles toward Guam.
Financials were the best-performing component of the CSI300 index, with the banks sub-index rising 1.4 per cent.
Bank stocks were strengthened by a statement from China's banking regulator late on Monday that first-half profits for commercial lenders rose nearly 8 per cent from the same period in 2016, while the level of non-performing loans (NPLs) in June did not increase from March.
Bank of China closed 3.1 per cent higher and China Construction Bank rose 2.9 per cent.
Energy and healthcare shares dragged on the index. The energy sub-index fell 0.3 per cent, and the healthcare sub-index fell 0.6 per cent.
Shanxi Xishan Coal and Electricity Power Co fell 2.3 per cent, and Shanghai Pharmaceuticals Holding Co Ltd suffered a 3.2 per cent drop.