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Tuesday, January 10, 2017, 15:18

China stocks step back from rally

By Reuters

SHANGHAI - China's main indexes edged lower on Tuesday, as investors took profits after a recent strong rally fuelled by reforms hopes.

The blue-chip CSI300 index fell 0.2 percent, to 3,358.27 points, while the Shanghai Composite Index lost 0.3 percent to 3,161.67 points.

The broad market losses were limited as participants continued to seek stocks that were tied to state-owned enterprises (SOEs) mixed-ownership reform theme.

For the day, the best gainer was airliners, which soared after reports that China Southern Air Holding Company planned to push mixed-ownership reform by introducing strategic investors, in particular internet enterprises.

Investors appeared to shrug off data showing producer prices surged the most in more than five years in December, as prices of coal and other raw materials soared.

The pick-up in prices reinforced views that the world's second-largest economy is on steadier footing heading into the new year, underpinned by stronger factory activity and domestic demand which are being driven by a lending and construction boom.

Sector performance was mixed. Gains were led by transport ial shares, while infrastructure and utilities lagged.

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