China stocks end lower after GDP data disappoints

SHANGHAI: China stocks reversed earlier gains to close lower on Monday, weighed down by industrial and healthcare firms, after the country reported a weaker-than-forecast GDP growth for the third quarter.

The blue-chip CSI300 index fell 0.8pc, to 4,755.49, while the Shanghai Composite Index lost 0.7pc to 3,312.67.

The CSI300 index had jumped as much as 1.2pc and the Shanghai Composite 1pc before changing course.

The tech-heavy start-up board ChiNext fell 1.3pc, while the STAR50 index shed 1.8pc.

Dragging down the market, the CSI300 healthcare index declined 2.5pc, while the CSI3000 industrials index retreated 1.3pc.

China's GDP grew 4.9pc in July-September from a year earlier, official data showed, slower than the median 5.2pc forecast by analysts in a Reuters poll and following 3.2pc growth in the second quarter.

Gross domestic product (GDP) grew 4.9pc in July-September from a year earlier, official data showed, slower than the 5.2pc forecast by analysts in a Reuters poll but faster than the second quarter's 3.2pc growth.

As long as the trend of economic recovery remains, the lower-than-expected data today could be easily digested by the market, said Wan Kelin, an analyst at Huaxi Securities.

Markets also fell as investors booked profits on upbeat news that China will give Shenzhen more autonomy for market reform and integration, Wan said.

China's major indexes have strengthened after the Golden Week holiday, with the CSI300 rising nearly 4pc so far this month, helped in part to Beijing's continued policy support for its capital markets and economy.

Going forward, the A-share market could remain rangebound below its July highs on uncertainties including the US election, Jin Jing, an analyst with Caitong Securities, said, adding that further monetary loosening this year is quite unlikely given the country's robust economic recovery.