China stocks little changed as data shows economy steadying

Third-quarter GDP grew 6.7 per cent from a year earlier. — Reuters pic
Third-quarter GDP grew 6.7 per cent from a year earlier. — Reuters pic

SHANGHAI, Oct 19 — China stocks were little changed today after data showed the Chinese economy is stabilising, as expected.

The blue-chip CSI300 index fell 0.2 per cent, 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 per cent 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”.

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

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

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