Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

China shares slide as profits weaken; liquor makers on the rocks

10/29/2018 | 12:10am EST
FILE PHOTO: An investor sits in front of displays showing stock information at a brokerage office in Beijing

SHANGHAI (Reuters) - China shares fell on Monday as cooling demand ate into profits for industrial and consumer firms, adding to investors' concerns about the slowing economy.

By the midday break, the blue-chip CSI300 index <.CSI300> was down 2.3 percent at 3,101.16 points, while the Shanghai Composite Index <.SSEC> was off 1.5 percent at 2,560.74, shrugging off Beijing's latest attempts to bolster the country's markets.

"A-shares are being led by corporate earnings, and we expect third-quarter earnings growth to show a bigger slide than mid-year reports, with the main board showing an even clearer decline," analysts at Huatai Securities said in a note, adding that they see little room for a rebound in the near term.

Data released on Saturday showed that profit growth at China's industrial firms slowed for a fifth straight month in September as sales of raw materials and manufactured goods further ebbed.

But consumer firms led the declines on Monday, with a sub-index of the CSI tracking consumer firms <.CSI300CS> plunging 8.4 percent.

The financial sector sub-index <.CSI300FS> fell 1.8 percent, the real estate index lost 1.4 percent and the healthcare sub-index slid 2.4 percent.

The smaller Shenzhen index <.SZSC> was down 1.25 percent and the start-up board ChiNext Composite index <.CHINEXTP> was weaker by 0.08 percent.

Distiller Kweichow Moutai, the country's most famous producer of fiery liquor baijiu, fuelled the broader consumer slump, falling by the daily limit of 10 percent after it reported sharply slower profit growth in the third quarter.

Among other distillers, Wuliangye Yibin also fell by the 10 percent limit, while Luzhou Laojiao was 6.26 percent lower.

A rise in utility companies limited declines in Hong Kong. H-shares listed in Hong Kong <.HSCE> fell 0.4 percent to 10,013.84, while the Hang Seng was down just 0.07 percent to 24,701.05.

Around the region, MSCI's Asia ex-Japan stock index <.MIAPJ0000PUS> firmed 0.4 percent while Japan's Nikkei index <.N225> was up a similar amount.[MKTS/GLOB]

China's yuan fell slightly against a firmer U.S. dollar, with traders continuing to debate whether the central bank will allow the currency to fall through the sensitive 7-to-the-dollar level, which could risk a spike in capital outflows and put further pressure on the economy and financial markets.

At 0420 GMT, the yuan <CNY=CFXS> was trading at 6.9538 per dollar, weaker than Friday's onshore close of 6.9948 per dollar.

(Reporting by Andrew Galbraith; Editing by Kim Coghill)


© Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
AMP LIMITED -0.95% 1.565 End-of-day quote.0.32%
EURO / US DOLLAR (EUR/USD) -0.62% 1.20749 Delayed Quote.-0.52%
HANG SENG 0.39% 28620.49 Real-time Quote.5.10%
KWEICHOW MOUTAI CO.,LTD. -2.44% 2082 End-of-day quote.4.20%
LUZHOU LAOJIAO CO.,LTD. -5.61% 243.5 End-of-day quote.7.67%
MSCI AC ASIA EX JAPAN (STRD, UHD) -0.64% 891.357 Real-time Quote.6.43%
NIKKEI 225 -0.62% 28519.18 Real-time Quote.3.92%
S&P/CITIC 300 INDEX 0.00% 4815.57 Delayed Quote.4.84%
S&P/CITIC 50 INDEX 0.00% 4871.64 Delayed Quote.4.45%
SHANGHAI STOCK EXCHANGE B SHARES INDEX 0.06% 250.6612 Real-time Quote.2.95%
SHENZHEN STOCK EXCHANGE A SHARE INDEX 0.30% 2477.41 Real-time Quote.1.63%
US DOLLAR / CHINESE YUAN RENMINBI (USD/CNY) 0.00% 6.48 Delayed Quote.-0.78%
WULIANGYE YIBIN CO.,LTD. -0.59% 287.7 End-of-day quote.-1.42%
Latest news "Economy & Forex"
07:15aChina's Economic Recovery Belies a Lingering Productivity Challenge
DJ
07:12aLebanon inks final deal for 2.1 million doses of Pfizer-BioNTech vaccine
RE
06:44aUK must not do trade deals with rights abusers, foreign minister says
RE
06:44aIsrael economy likely to grow 4.6% in 2021, says finance minister
RE
06:43aBeirut blast chemicals possibly linked to Syrian businessmen - report, company filings
RE
05:45aPost-Covid Recovery Divides Rich Nations From Poor -- Journal Report
DJ
05:24aAustria extends third COVID-19 lockdown to Feb 8
RE
05:11aGerman minister says COVID curbs should be eased for vaccinated people
RE
05:07aAustria extends third COVID-19 lockdown to Feb 8
RE
04:32aPALESTINE MONETARY AUTHORITY : Governor Meets the British Consul-General
PU
Latest news "Economy & Forex"