China shares end flat as healthcare losses offset gains in property stocks

BEIJING/SHANGHAI: China stocks erased earlier gains to end nearly flat on Wednesday, with gains in property stocks offset by losses in healthcare, as investors took a breather following a recent rally on upbeat data pointing to a continued economic recovery.

At the close, the Shanghai Composite index was down 0.07pc at 3,449.38.

The index hit its highest since February 2018 earlier in the session, as investors cheered better-than-expected manufacturing data and hopes of continued economic recovery.

China's blue-chip CSI300 index ended flat, while the start-up board ChiNext Composite index was 0.57pc lower. Shanghai's tech-focused STAR50 index closed up 0.3pc.

Leading the gains, the real estate sub-index rose 0.96pc by the end of the session, with heavyweight Greenland Holdings Corp Ltd gaining 2.63pc.

The sub-index tracking blue-chip healthcare stocks retreated 0.42pc.

The smaller Shenzhen index was up 0.16pc.

China's factory sector activity grew at its fastest pace in a decade in November, a business survey showed on Tuesday, as the economy rebounds to pre-pandemic levels.

The virus infection situation remains stable, as mainland China reported nine new COVID-19 cases on Dec. 1, down from 12 cases a day earlier, the country's national health authority said.

U.S. President-elect Joe Biden has said that he will not immediately act to remove the Phase 1 trade agreement, which President Donald Trump inked with China, the New York Times reported.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.21pc, while Japan's Nikkei index closed up 0.05pc.