INSUBCONTINENT EXCLUSIVE:
SHANGHAI: China stocks started 2019 on a bearish note, closing lower on Wednesday, as lacklustre economic data stoked worries about a global
slowdown.
The blue-chip CSI300 index fell 1.4 per cent to 2,969.54 points, while Shanghai Composite Index ended down 1.1 per cent at
2,465.29 points.
China's factory activity contracted for first time in over two years in December, highlighting challenges facing Beijing as
it seeks to end a bruising trade war with Washington and reduce risk of a sharper economic slowdown in 2019.
The official Purchasing
Managers' Index (PMI) - first snapshot of China's economy each month - fell to 49.4 in December, below 50-point level that separates growth
from contraction, a National Bureau of Statistics (NBS) survey showed on Monday.
There is a hint to some extent from PMI data, that slide in
corporate profits has just begun, Guotai Junan Securities wrote in note.
Largely dovetailing with official survey, a private survey showed
China's factory activity contracted for first time in 19 months in December as domestic and export orders continued to weaken.
China's
monetary policy stance has not shifted, but a greater focus will be placed on flexible policymaking to adjust to changes, a central bank
official said, with Chinese economy widely expected to face more headwinds next year.
Around region, MSCI's Asia ex-Japan stock index was
weaker by 1.72 per cent, while Japan's Nikkei index closed down 0.31 per cent.
At 07:05 GMT, yuan was quoted at 6.8516 per U.S
dollar, 0.31 per cent firmer than previous close of 6.873.
The largest per centage gainers in main Shanghai Composite index were Beijing
Airport High-Tech Park Co Ltd , up 10.06 per cent, followed by Aerospace Communications Holdings Co Ltd, gaining 10.03 per cent and Eastern
Communications Co Ltd, up by 10.03 per cent.
The largest per centage losers in Shanghai index were shares of Hubei Jumpcan Pharmaceutical Co
Ltd, down 9.99 per cent, followed by those of Kangmei Pharmaceutical Co Ltd losing 9.99 per cent and Ribo Fashion Group Co Ltd falling 9.97
per cent.
As of 07:06 GMT, China's A-shares were trading at a premium of 18.88 per cent over Hong Kong-listed H-shares
