Most China Stocks Fall as Commodity Producers Retreat; ZTE DropsBloomberg News
Most Chinese stocks fell, led by telecommunications companies and commodity producers.
The Shanghai Composite Index was little changed as more than two shares slid for each that rose at 10:54 a.m. local time. ZTE Corp., China’s second-largest maker of phone equipment, dropped 1.5 percent. Shandong Gold Mining Co. retreated for a fourth day as bullion prices declined to a three-month low. Yanzhou Coal Mining Co. lost 3.8 percent.
Investors are weighing the scope of government efforts to support growth in the world’s second-largest economy as analysts predict the weakest annual expansion since 1990. The finance ministry will accelerate its scheduled budget spending amid downward pressure on the economy, according to a statement on its website.
“The market consensus is that the economy is facing relatively big pressure on a downward trend,” said Wu Kan, a money manager at Shanghai-based Dragon Life Insurance Co., which oversees about $3.3 billion. “Going forward, we would see some stimulus measures.”
The CSI 300 Index was little changed at 2,170.28. The Hang Seng China Enterprises Index climbed 0.7 percent. The Bloomberg China-US Equity Index added 0.6 percent in New York yesterday.
China’s economy is generally stable and positive changes have appeared in structural adjustment, Premier Li Keqiang said, according to China Central Television. Li also said there were still uncertainties and unstable factors in the global recovery, CCTV reported.
The Shanghai Composite has advanced 1.2 percent in May, heading for the first monthly gain since February. The index is valued at 7.6 times 12-month projected earnings, compared with the five-year average multiple of 11.7, according to data compiled by Bloomberg.
— With assistance by Shidong Zhang