BEIJING, Jul 1 (Reuters) – Chinese stocks fell on Thursday, largely halting early losses as gains in real estate and banks helped offset the fall in industrial companies following weak industrial data.
** At the close, the Shanghai Composite was down 0.07% to 3,588.78, while the blue-chip CSI300 rose 0.11% after falling 0.62% earlier.
** Among the worst performing sectors, the industrial sub-index fell 1.53% and the energy sub-index fell 0.74%.
** Data showed that manufacturing activity in China grew at a slower pace in June, as renewed COVID-19 cases in the export province of Guangdong and supply chain problems brought production growth to its lowest level in 15 months.
** The manufacturing sector has gradually returned to normal, but problems persist, said Wang Zhe, senior economist at Caixin Insight Group.
** At best, the real estate and banking sectors were up 4.32% and 1.96%, respectively, and blue-chip stocks moved up.
** Investors continued to be wary of overestimates in certain sectors.
** “The underpinnings of emerging energy automakers and supply chain companies are strong, but investors including us have some concerns about the valuation,” said Wang Qi, CEO of MegaTrust Investment (HK).
** Investors are closely watching the upcoming H1 reporting season, which will largely determine market outlook and sentiment for the rest of the year, Wang Qi added.
** The Lesser Shenzhen Index fell 0.83% and the ChiNext Composite Launch Site Index was 0.63% weaker.
** Across the region, the Asian MSCI Index, excluding Japan, declined 0.35%, while the Japanese Nikkei Index declined 0.29%.
** Hong Kong Stock Market is closed on Thursday for the Hong Kong SAR Foundation Day.
Reporting by Cheng Leung, Luoyan Liu and Andrew Galbraith; Edited by Amy Karen Daniel