China: Stocks edge down as investors shrug off profit data

[SHANGHAI] China's main stock indexes inched down in light trading on Tuesday as many investors shrugged off data showing solid profit growth for the industrial sector in November.

The CSI300 index fell 0.2 per cent, to 3,316.65 points, while the Shanghai Composite Index lost 0.2 per cent, to 3,115.00 points.

Trading volume in Shanghai and Shenzhen declined to nearly three-month lows, despite fresh signs of economic improvement as China reported that November industrial profits increased 14.5 per cent from a year earlier.

Shares of some construction firms, including Longjian Road & Bridge Co and Long Yuan Construction Group, surged on hopes China will boost infrastructure investment next year.

To sweeten infrastructure deals for private investors, China has unveiled plans to securitise assets that are part of public-private partnership (PPP) investments.

The property sector gave back some initial gains but still remained the best performer, up more than 1.3 per cent, as it got a boost from index heavyweight China Vanke Co Ltd.

Raw material stocks steadied after Monday's sharp declines, as Beijing punished officials and two steel market for breaking capacity-cutting rules.

But declines in futures contract of coke, down about 2 per cent at the close, dragged energy majors lower.

REUTERS