October 18, 2021 - 2:26 PM Updated
By Reuters Staff
SHANGHAI, (Reuters) - China stocks closed lower on Monday as data showed growth in the world's second-largest economy hit a one-year low, while analysts did not expect an imminent broad monetary policy support.
The blue-chip CSI300 index fell 1.2%, to 4,874.78, while the Shanghai Composite Index lost 0.1% to 3,568.14 points.
China's economy grew 4.9% in July-September from a year earlier, the weakest pace since the third quarter of 2020, hurt by power shortages, supply bottlenecks and sporadic COVID-19 outbreaks and rising heat on policymakers amid increasing jitters over the property sector.
Despite slowing growth, policymakers signalled they have other ways to support growth. Some analysts toned down their expectations for further broad monetary policy support.
"The PBoC may use instruments such as the medium-term lending facility (MLF), open market operations (OMO) and a newly introduced 'green facility' to keep liquidity conditions reasonably adequate in Q4," Nomura said in a note, citing the liquidity support may not be in the form of an RRR cut.
Real estate stocks fell over 2.5% on signs of a slowdown in the sector and even as the central bank said spillover effects from China Evergrande Group's debt woes were controllable.
"We see no major change to Beijing's property curbs from the PBOC presser," wrote Ting Lu, chief China economist at Nomura.
A former government expert said China could widen property tax trial, after President Xi Jinping on Friday called for progress on the tax that could help reduce wealth inequality.
Consumer staples stocks dropped over 3%, with liquor makers shedding 7.4%.
Energy and coal stocks soared 4.7% and 5.9%, respectively.
China's coking coal and coke futures jumped to record highs as supply remains tight even though Beijing has ramped up efforts to boost output. (Reporting by Shanghai Newsroom; Editing by Krishna Chandra Eluri)
Sumber : Reuters
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