China stocks dip as investors count down to extended holidays; HK flat

Source : REUTERS
Last Updated: Fri, Sep 23, 2016 10:20 hrs

* SSEC -0.1 pct, CSI300 -0.3 pct, HSI -0.1 pct

* China stock market will be suspended Oct 1-9

* China property stocks give back much of Thursday's gains

SHANGHAI, Sept 23 (Reuters) - China stocks stepped back on Friday, failing to build on robust gains the previous day as many investors sat on their hands ahead of the long National Day holiday that begins Oct 1.

Hong Kong stocks were little changed, as the upbeat mood stirred by Federal Reserve's inaction on rates began to fade.

China's blue-chip CSI300 index fell 0.3 percent, to 3,282.84 points by lunch break, while the Shanghai Composite Index lost 0.1 percent, to 3,039.62 points.

"Many investors are not in a mood to trade ahead such a long holiday," said Wang Yu, analyst at Pacific Securities.

China's stock market will be suspended on Oct 1 and resume trading on Oct 10 for the National holidays, according to an exchange notice.

"On the economic front, there's not much encouraging data that entices investors into the market," Wang said.

Market sentiment was checked by a sharp pull-back in property shares following the previous session's surge, as investors took profit on doubts the upward trend will last.

Sector bellwether Vanke slumped 4.5 percent, giving back much of Thursday's gains.

But infrastructure stocks were firm amid signs that Beijing is stepping up approval of infrastructure projects to aid a struggling economy.

China's Ministry of Finance is expected to give green light to a third batch of public-private partnership (PPP) projects worth about 2.2 trillion yuan ($329.84 billion) in total investment, official Shanghai Securities News reported.

In Hong Kong, the Hang Seng index dropped 0.1 percent, to 23,747.37 points, while the Hong Kong China Enterprises Index lost 0.4 percent, to 9,855.50.

Most sectors fell, with industrial and consumer stocks leading the decline.

(Samuel Shen and John Ruwitch; Editing by Shri Navaratnam)



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