China stocks fall as PBOC researcher calls for higher rates

Last Updated: Wed, Dec 06, 2017 13:19 hrs
China Markets

China stocks fell on Wednesday amid rising expectations that central banks will tighten liquidity, pushing interest rates higher.

** A senior Chinese researcher at the People's Bank of China has urged central banks to adopt monetary policies that do not encourage markets to expect the indefinitely lower for longer interest rates that encourage excessive risk-taking by lenders, the Securities Times reported on Wednesday.

** At the close, the Shanghai Composite index was down 9.55 points or 0.29 percent at 3,294.13. *

* The blue-chip CSI300 index was down 0.6 percent, with its financial sector sub-index lower by 1.11 percent, the consumer staples sector down 0.97 percent, the real estate index off 0.68 percent and healthcare sub-index down 0.36 percent.

** The smaller Shenzhen index ended up 0.68 percent and the start-up board ChiNext Composite index was higher by 1.46 percent.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.28 percent while Japan's Nikkei index closed down 1.97 percent.

** At 07:03 GMT, the yuan was quoted at 6.614 per U.S. dollar, 0.07 percent firmer than the previous close of 6.6188.

** The largest percentage gainers in the main Shanghai Composite index were Hangzhou Silan Microelectronics Co Ltd up 10.04 percent, followed by Shanghai Xinhua Media Co Ltd gaining 10.02 percent and Shanghai Belling Corp Ltd up by 10 percent.

** The largest percentage losses in the Shanghai index were Zhejiang ChiMin Pharmaceutical Co Ltd down 10.02 percent, followed by Sichuan Langsha Holding Ltd losing 10 percent and Tibet Summit Resources Co Ltd down by 10 percent.

** So far this year, the Shanghai stock index is up 6.45 percent, while China's H-share index listed in Hong Kong is up 22.2 percent. Shanghai stocks have declined 0.41 percent this month.

** About 15.16 billion shares were traded on the Shanghai exchange, roughly 85.5 percent of the market's 30-day moving average of 17.72 billion shares a day. The volume in the previous trading session was 20.83 billion.

** As of 07:04 GMT, China's A-shares were trading at a premium of 35.04 percent over the Hong Kong-listed H-shares.

** The price-to-earnings ratio of the Shanghai index was 14.88 as of the last full trading day while the dividend yield was 1.9 percent.

** So far this week, the market capitalisation of the Shanghai stock index has risen by 0.20 percent to 28.85 trillion yuan.

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