Shanghai shares sag as China's home prices grow at slowest rate since 2016

Credit: REUTERS/CHINA DAILY

Shanghai shares edged lower on Tuesday, as data showing a slower pace of growth in new home prices dragged on stocks of banks, industrial firms and property developers.

SSEC -0.1%, CSI300 +0.2%, HSI -0.1%

Real estate index sags on slower home price growth

Consumer staples support blue-chip index

SHANGHAI, Oct 20 (Reuters) - Shanghai shares edged lower on Tuesday, as data showing a slower pace of growth in new home prices dragged on stocks of banks, industrial firms and property developers.

** New home prices in China grew at their slowest pace in more than 4-1/2 years as tightening measures introduced by some big cities to guard against a potential bubble weighed on a market that has provided much-needed support to an economy hard-hit by the novel coronavirus pandemic.

** At the midday break, the Shanghai Composite index .SSEC was down 0.13% at 3,308.31 points.

** The CSI300 real estate index .CSI000952 was down 1.06% at midday and the financial sector sub-index .CSI300FS fell 0.53%.

** But the broader blue-chip CSI300 index .CSI300 gained 0.17% after flitting between gains and losses in the morning session.

** The index was supported by the consumer staples sector .CSI000912, which rose 1.57%. Economic data released Monday showed that China's economic recovery quickened in the third quarter, supported by growing consumption.

** Chinese H-shares listed in Hong Kong .HSCE rose 0.08% to 9,986.42, while the Hang Seng Index .HSI was down 0.09% at 24,520.34.

** Hong Kong shares of Chinese e-commerce giant Alibaba Group Holding Ltd 9988.HK touched a record high after Alibaba-backed Ant Group IPO-ANTG.HK won approval for an offshore leg of its IPO.

** The smaller Shenzhen index .SZSC edged up 0.4%, the start-up board ChiNext Composite index .CNT was 0.93% higher and Shanghai's tech-focused STAR50 index .STAR50 added 0.21%​.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS gained 0.36%, while Japan's Nikkei index .N225 fell 0.53%.

** The yuan CNY=CFXS was quoted at 6.6854 per U.S. dollar, 0.06% weaker than the previous close of 6.6813.

(Reporting by Andrew Galbraith, Editing by Sherry Jacob-Phillips)

((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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