China shares end lower as key lending rate kept steady for 5th month

Credit: REUTERS/CHINA DAILY

China stocks ended lower on Monday, dragged by consumer staples and financial stocks after the central bank left its benchmark lending rate unchanged, with investors taking profits after expectations of further stimulus lifted shares in the previous session.

Shanghai stocks -0.63%, blue-chip CSI300 index -0.96%

China leaves lending benchmark LPR unchanged for 5th month

Consumer, financials lead losses

SHANGHAI, Sept 21 (Reuters) - China stocks ended lower on Monday, dragged by consumer staples and financial stocks after the central bank left its benchmark lending rate unchanged, with investors taking profits after expectations of further stimulus lifted shares in the previous session.

** At the close, the Shanghai Composite index .SSEC was down 0.63% at 3,316.94.

** The blue-chip CSI300 index .CSI300 shed 0.96%, with its financial sector sub-index .CSI300FS falling 0.95% and the consumer staples sector .CSI000912 down 1.61%. Both sub-indexes had posted strong gains on Friday.

** China kept its benchmark lending rate for corporate and household loans, the loan prime rate (LPR), steady for a fifth straight month, as expected.

** The monthly fixing came after the People's Bank of China kept medium-term borrowing costs unchanged, and after President Xi Jinping said China's economy remains resilient.

** Analysts at ING said they did not expect China to change its monetary stance unless the country faced a resurgence of COVID-19 cases, an escalation in the Sino-U.S. technology war or increasing damage from the trade war.

** China's ByteDance said on Monday that TikTok's global business will become its subsidiary, despite Oracle Corp ORCL.N and Walmart Inc WMT.N saying they and U.S. investors would own the majority of the app. U.S. President Donald Trump in August signed an executive order giving the company 90 days to sell its video app.

** Securities firms outperformed, with the CSI SWS Securities Index .CSI399707 trimming just 0.19% after Guolian Securities Co 1456.HK601456.SS said it would acquire Sinolink Securities Co 600109.SS, a move that accelerates the consolidation of Chinese brokerages.

** The smaller Shenzhen index .SZSC ended down 0.44% and the start-up board ChiNext Composite index .CNT was weaker by 1.035%.

** At 07:01 GMT, the yuan CNY=CFXS was quoted at 6.7606 per U.S. dollar, 0.14% firmer than the previous close of 6.77.

(Reporting by Andrew Galbraith; Editing by Ramakrishnan M.)

((Andrew.Galbraith@tr.com; +86 21 2083 0079; Reuters Messaging: andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))

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