* SSEC -0.4 pct, CSI300 -0.5 pct, HSI -0.2 pct
* Economic data shows recovery momentum could be waning
* Hong Kong market closed on Friday and Monday
SHANGHAI, April 14 China stocks are poised to
end the week lower with shares on Friday dipping slightly on
signs an economic recovery could be losing steam, but some
traders suspect the government is intervening to limit losses.
The blue-chip CSI300 index fell 0.5 percent, to
3,498.16 points by the lunch break, and was down 0.8 percent for
the week. The Shanghai Composite Index lost 0.4 percent
to 3,261.64 points.
A slew of data published this week, including inflation and
trade, have led investors to question the sustainability of the
Data showed China's production price inflation starting to
peak, CPI weaker-than-expected, property sales growth down
sharply, and car sales growth turning negative.
"These are definite signs that the reflation trade is
fading," said Hong Hao, head of research at BOCOM International.
He added that the market had not fully priced in these
changes to the world's second largest economy, partly because of
suspected government intervention.
For example, regulators on Wednesday suspended trading in a
brokerage account that contributed to the flash crash in shares
of Ping An Insurance Group Co of China Ltd and
Industrial Bank Co Ltd.
Meanwhile, last-minute buying was seen in other index-heavy
weights, such as PetroChina Co Ltd and Sinopec Corp
"The attention from the 'visible hand' is bewildering, and
may be preventing stocks from pricing in the waning momentum in
China's economic rehabilitation," Hong said, referring to the
By Friday lunch time, most sectors in China were in negative
territories, with real estate and transport
shares leading the decline.
Reflecting renewed preference in defensive stocks as
cyclical shares corrected, Chinese spirit maker Kweichow Moutai
Co hit record highs.
The Hong Kong stock market is suspended from trading on
Friday and Monday due to public holidays.
(Reporting by Samuel Shen and John Ruwitch; Editing by Randy