China Shares Flat as Data Shows Economy Steadying

Markets Reuters

China stocks were little changed on Wednesday after data showed the Chinese economy is stabilizing, as expected.

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The blue-chip CSI300 index fell 0.2 percent, to 3,316.24, while the Shanghai Composite Index was flat at 3,084.72 points.

There was little surprise from China's third-quarter gross domestic product (GDP) data. The economy grew 6.7 percent from a year earlier, steady from the previous quarter, as increased government spending and a property boom offset stubbornly weak exports.

"The upshot from today's data is that economic activity seems to be holding up reasonably well, with few signs that a renewed slowdown is just around the corner," wrote Julian Evans-Pritchard, China economist at Capital Economics.

Still, he said, "as the boost from policy stimulus begins to wear off, probably at some point early next year, continued structural drags mean the economy is set to begin slowing again."

SOE reform remains a strong investment theme, with investors continuing to focus on companies likely benefit to from Beijing's structural and state-owned enterprise (SOE) reforms.

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Most sectors were basically flat, with infrastructure stocks leading the gains.

(Reporting by the Shanghai Newsroom; Editing by Shri Navaratnam)