Shanghai stocks fall for 6th straight week on economy fears

China stocks ended slightly lower on Friday, capping a sixth straight week of losses for the Shanghai Composite Index, as industrial profit data added to fears that a recent pick-up in the economy is fizzling out.

The Shanghai Composite Index was fractionally lower at 2,821.05 points, and slipped 0.2 percent for the week.

The index has now has lost more than 8 percent since mid-April.

The blue-chip CSI300 index fell 0.1 percent, to 3,062.50, declining 0.5 percent for the week.

Many investors remained on the sidelines, worried about China’s economic health and the impact of a possible U.S. rate hike as soon as next month. Trading volume in Shanghai shrank to a near five-month low.

Profit growth at China’s industrial firms slowed in April, in line with other data for the month which suggested the economy may be losing steam again after picking up earlier in the year.

Sector performance was mixed, with IT and telecommunications shares rising but energy and healthcare stocks slipping.

Source: reuters

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Chinese Stocks in Hong Kong Rally for Third Day on Economy

Chinese stocks rose, sending a benchmark index in Hong Kong toward its biggest three-day gain in five months, as the government accelerates measures to support the economy.

The Hang Seng China Enterprises Index climbed 1.2 percent to 8,122.66 at 10:02 a.m., extending gains to 8.1 percent during the three-day rally. Anhui Conch Cement Co. led a rally for building-materials makers. The Shanghai Composite Index swung between gains and losses after the gauge jumped 3.3 percent on Tuesday following data that showed the nation’s banks doled out a record amount of loans in January.

China’s chief planning agency is making more money available to local governments to fund new infrastructure projects, according to people familiar with the matter, while the cabinet has discussed lowering the minimum ratio of provisions that banks must set aside for bad loans, a move that would free up additional cash for lending.

The gauge of Chinese shares traded in Hong Kong plunged 49 percent from its May high through last week, sending valuations to record lows. Declines have created bargains, Mark Mobius, the Franklin Resources Inc. money manager who’s been investing in emerging markets for more than four decades, said this week.

Source : Bloomberg