China stocks end lower as liquor, financial stocks weigh; post weekly loss again

Reuters2021-06-11

SHANGHAI, June 11 (Reuters) - China stocks ended lower on Friday, dragged down by liquor and financial firms, and posted a second straight weekly loss, while data showed the country's broader credit growth slowed in May.

** The blue-chip CSI300 index fell 0.9% to 5,224.70, while the Shanghai Composite Index shed 0.6% to 3,589.75.

** The CSI300 liquor index slumped 3.3% on persistent worries over lofty valuations, while the CSI300 financials index slid 1.1%.

** Jiangsu Yanghe Brewery , Beijing Shunxin Agriculture and Xinghuacun Fen Wine dropped between 1.1% and 10.0%.

** For the week, the CSI300 declined 1.1%, while the SSEC dipped 0.1%.

** Many analysts and traders said there was a lack of momentum for a strong rally as they expect Beijing to maintain stable liquidity and a tight monetary stance.

** China's central bank governor said inflation was "under control" and monetary policy would be kept steady, a day after inflation concerns were fanned by data showing the fastest rise in factory-gate prices in 12 years.

** "China's Jan-May bond issuance fell short of expectations, indicating acceleration of issuance from June, which could decrease money flows into the equities market," said Luo Huibiao, an investment advisor from Guosen Securities.

** Caution also prevailed ahead of the three-day Dragon Festival holiday, which starts from Saturday.

** China's new bank loans unexpectedly rose in May from the previous month, but broader credit growth continued to slow as the central bank seeks to contain rising debt.

** Top Chinese leaders have repeatedly vowed to avoid any sharp policy turns, keeping borrowing costs low and telling banks to maintain support for small firms, while being more watchful about extending credit to hot areas of the economy.

** However, shares in China's Zhejiang-based listed firms jumped, as investors cheered Beijing's latest policy support for the province.

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