China stocks close lower as slowing property sector clouds outlook

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SHANGHAI, Nov 15 (Businesshala) – China shares closed lower on Monday after data showed asset investment and sales growth slowed, impacting the economic outlook. Trading resumed on China’s Beijing Stock Exchange, with new shares rising up to six times.

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** The blue-chip CSI300 index fell 0.1% to 4,882.38, while the Shanghai Composite Index fell 0.2% to 3,533.30.

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** China’s industrial production and retail sales grew faster than expected in October, despite the COVID-19 outbreak and new restrictions to control supply shortages, but the property sector weighed on the economic outlook.

** Property investment and sales growth slowed in January-October compared to the prior nine months, and new construction starts as measured by floor area.

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“The asset sector slowdown is getting worse,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management, adding that “there were significant risks to the macro outlook over the next few quarters.”

** “Any reasonable relaxation of funding restrictions for developers will help support China’s growth momentum in Q4,” said Ken Cheung, chief Asian FX strategist at Mizuho Bank.

** Trading on the new Chinese exchange began on Monday, with shares of 10 companies that recently held an initial public offering (IPO) rising between 100% and 500% and triggering a circuit breaker.

** Real estate firms, new energy stocks and machinery stocks went down between 1.5% and 3.7%.

** The Healthcare sub-index and the Media sub-index grew by 1.9% and 3.4%, respectively.

** Securities firms shed 0.6%, but Industrial Securities said in a note that the establishment of the Beijing Exchange would provide more opportunities for brokers, especially for the investment banking business. (Reporting by Shanghai Newsroom)

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