China stocks retreat from 13-month high
The Shanghai Composite Index fell by 1.70% or 55.75 points to 3,215.04 at around 3.00pm Beijing time.
China stocks fell from a 13-month high on Monday after some comments from Chinese authorities suggest that the pace of policy easing will slow following some signs of stabilization in the country. A warning on real estate speculation by the Chinese authorities also led to the easing in trade.
The Shanghai Composite Index fell by 1.70% or 55.75 points to 3,215.04 at around 3.00pm Beijing time. The smaller Shenzhen Composite Index eased 1.53% or 27.14 points to 1,751.67.
China’s CSI300 real-estate index fell 2.39% or 88.55 points to 4022.55. China’s principal policymaking committee on Friday said housing in China should not be used for speculation, in an otherwise positive commentary on the country’s recent growth numbers.
In the commentary from China’s principal policymaking team, the committee said China will maintain policy support for its economy, which is still facing ‘downward pressure’ and difficulties after a better-than-expected first quarter performance.
But the committee also said China will try to maintain a balance between promoting reforms, controlling risks, and stabilizing economic growth.
Better-than-expected Q1 GDP numbers
The statement comes days after China reported a better-than-expected 6.4% year-on-year growth for the first quarter, helped by government stimulus measures.
China's economic growth is expected to slow to a near 30-year low of 6.2% for this year, a Reuters poll showed last week, as sluggish demand at home and abroad weigh on activity.
The Chinese Yuan gained 0.12% from the previous day’s close of RM$6.7044 to hit RM$6.7123 against the greenback as of 3.25pm Beijing time.
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