China stocks retreat after money and credit data misses expectations

SHANGHAI, Dec 10 (Reuters) – China’s blue chips slipped on Friday after scaling their highest in more than four months in the previous session, as November money and credit data missed analyst expectations, with property developers and brokers leading the retreat.

The CSI300 index (.CSI300) fell 0.6% to 5,047.11 by the end of the morning session, while the Shanghai Composite Index (.SSEC) lost 0.3% to 3,661.12.

The Hang Seng index (.HSI) dropped 0.5% to 24,132.85. The Hong Kong China Enterprises Index (.HSCE) lost 0.4% to 8,625.90.

** For the week, the CSI300 Index has gained 3% and is set for its best week in three months, while the Hang Seng index added 1.5%.

** New bank lending in China rose less than expected in November from the previous month even as the central bank seeks to bolster slowing growth in the world’s second-biggest economy. read more

** “The weaker-than-expected money and credit data suggests credit demand remains weak amid the ongoing growth slowdown,” Nomura said in a note.

** The CSI300 index rose for a third consecutive session on Thursday, buoyed by a cut to the reserve requirement ratio (RRR) for banks to bolster slowing economic growth. read more

** China set to witness record weekly foreign money inflows of more than 63.29 billion yuan ($9.94 billion) into its stock market through the Stock Connect schemes, according to East Money Information Co (300059.SZ).

** Concerns around defaults in the property market and ADR delisting weighed on sentiment, but A-shares are more protected given no exposure to ADRs and a tendency to react more positively to RRR cuts, according to Morgan Stanley.

** Real estate developers (.CSI000952) and brokers (.CSI399975) dropped 1.5% each, while both energy (.CSIEN) and defence shares (.CSI399959) lost 1%.

** In Hong Kong, embattled developer China Evergrande Group (3333.HK) slipped 1.7% after ratings agency Fitch downgraded the company and Kaisa Group (1638.HK), saying they had defaulted on offshore bonds. read more

** The Hang Seng Tech Index (.HSTECH) edged down 0.5%, while the healthcare index (.HSCIH) lost 2.1%.

Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu

Our Standards: The Thomson Reuters Trust Principles.