SHANGHAI: China stocks closed flat on Wednesday as losses in property developers offset gains in auto and tech firms, despite an assurance from a senior state planner to keep growth stable in the world’s second largest economy.
At the close, the Shanghai Composite index was down 0.07% at 3,622.62 and the blue-chip CSI300 index was up 0.02%.
Auto firms led the gains with the sector’s sub-index rising 2.19% while the information technology sub-index climbed 1.12%.
The smaller Shenzhen index ended up 0.63% and the start-up board ChiNext Composite index was higher by 0.545%.
“With the policy stance clearly shifting from over-tightening to easing, we think the cycle is also turning from a mini-downturn to an upswing in China,” Morgan Stanley analysts wrote in a research note on Tuesday.
China should evaluate the likely impact of policies on growth before implementation, and “be prudent” in rolling out those with contractionary effects, Ning Jizhe, deputy head of the National Development and Reform Commission, said in an interview that was published on Wednesday.
However, the real estate index fell 1.02% and the financial sector sub-index lost 0.92%
Recent sharp increases in China property stocks have prompted some developers, including Tahoe Group and Sichuan Languang Development Co, to flag investment risks, citing poor fundamentals.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.3%, while Japan’s Nikkei index ended up 0.16%.
At 07:10, the yuan was quoted at 6.3712 per U.S. dollar, 0.01% firmer than the previous close of 6.3716.