November 27, 2018 / 8:00 AM / 7 months ago

China stocks end lower as Trump comments, external risks weigh

    * .SSEC -0.04, .CSI300 -0.1 pct
    * Trump says he expects to move ahead on China tariffs
    * Volume down as investors watch for global trade, slowdown

    By Noah Sin
    HONG KONG, Nov 27 (Reuters) - China stocks closed marginally
lower on Tuesday after U.S. President Donald Trump seemed to
quash hopes of a trade truce with Beijing, while investors
remained on the sidelines amid a slowdown in global growth.
** The Shanghai Composite index         ended flat at 2,574.68,
and the blue-chip CSI300 index closed 0.1 percent lower, after
trading higher earlier in the session.             
** Small losses were seen across the board. CSI300's financial
sector sub-index             closed 0.3 percent lower, the
consumer staples sector              ended down 0.5 percent and
the real estate index              closed 0.8 percent weaker.
** Sentiments were dampened as the White House appeared hawkish
ahead of the scheduled talk between U.S. President Donald Trump
and Chinese President Xi Jinping at the G20 summit this week.
** In an interview with the Wall Street Journal, Trump said he
expects to move ahead with raising tariffs on $200 billion in
Chinese imports to 25 percent from 10 percent currently. Trump
said it was "highly unlikely" he would accept China's request to
hold off on the increase, planned for Jan. 1.             
** The ongoing trade tensions appear to be having an impact on
China's trade patterns. The country's imports of soybeans from
Brazil doubled year-on-year in October, according to figures
published on Monday. China's soybean imports from Russia also
shot up 60 percent year-on-year.             
** Most investors are cautious as optimism over the G20 summit
wanes, said Zhang Qi, a Shanghai-based analyst, Haitong
Securities. "Volume has come down quite a bit," he said.
** About 12.4 billion shares were traded on the Shanghai
exchange. The volume in the previous trading session was 13.4
billion shares, and 19.1 billion in the session before that.
** The smaller Shenzhen index         ended up 0.4 percent and
the start-up board ChiNext Composite index             was
higher by 0.8 percent.
** Worries over economic growth continued to hang over the
market. Profit growth at China's industrial firms slowed down
for a sixth straight month in October as factory prices and the
pace of sales increases softened, according to official data
released on Tuesday.             
** Investors, however, are paying less attention to this set of
data, since "there were hints" of a growth slowdown in China
prior to its release, said Zhang. Instead, the market will be
watching the speeches by the Fed chairman and his deputy this
week, according to Linus Yip, chief strategist at First Shanghai
Securities in Hong Kong.                         
** "People will want to know whether the Fed will slow down its
plans to hike rates" given that tightening in the United States
has been the main source of pressure on emerging markets,
including China, he said.
** The largest percentage gainers in the main Shanghai Composite
index were Guangxi Guidong Electric Power Co Ltd            ,
which closed up 10.1 percent, followed by ARTS Group Co Ltd
           , which ended 10 percent firmer and Eastern
Communications Co Ltd            , which closed 10 percent
** The largest percentage losses in the Shanghai index were
Chongqing Fuling Electric Power Industrial Co Ltd            
which closed down 5.1 percent, followed by Shandong Tyan Home Co
Ltd            , which ended down 5 percent, and Beihai Gofar
Marine Biological Industry Co Ltd            , which closed down
4.9 percent.  

 (Reporting by Noah Sin, Editing by Sherry Jacob-Phillips)
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