Chinese stocks dipped 0.08 percent in active trade on Thursday, snapping a five-day winning streak with energy and property shares dropping after data showed economic growth fell in the first quarter to the lowest rate on record. The Shanghai Composite Index ended at 2,534.134 points.
The index had edged up to a fresh eight-month intraday high of 2,549.312 during afternoon trade, after slipping as much as 1.5 percent in the morning following the data's release. Gaining Shanghai A shares outnumbered losers by 508 to 399. Turnover in Shanghai A shares rose to 174.9 billion yuan ($25.6 billion) from Wednesday's 173.7 billion yuan.
China's annual gross domestic product growth slowed in the first quarter to 6.1 percent from the fourth quarter's 6.8 percent, the National Bureau of Statistics said on Thursday. That marked the weakest growth since quarterly records began in 1992 and compared with economists' forecast of a 6.3 percent rise, but March data showed a pick-up from the first two months.
Analysts said Thursday's data was generally in line with expectations, although confidence in the prospects for an economic recovery was rising as investors expect the trend for improvements in month-on-month data will continue. Profit-taking pressure may weigh on the index after its recent rally, they added, and it could consolidate around 2,500 points for several days.
"The danger of profit-taking is increasing and some shares have lost their attraction," said Huatai Securities analyst Chen Huiqin. Shenhua Energy sank 3.11 percent to 24.63 yuan after rallying earlier this week, while Sinopec Corp lost 1.13 percent to 9.66 yuan after advancing 2 percent on Wednesday.
Property shares were weak with industry leader China Vanke sagging 1.51 percent to 8.46 yuan. The official China Securities Journal reported that China's three major airlines, Air China, China Eastern and China Southern, saw combined losses of more than 25 billion yuan in 2008, based on published and expected results.
China Southern dropped 3.08 percent to 5.98 yuan while Air China slipped 1.93 percent to 6.61 yuan. China Eastern's shares were suspended from trade on Thursday after it reported a full-year loss, and are to be placed under special treatment, including a smaller daily limit for share price movements.
Several companies' shares fell after they estimated losses or profit drops for the first quarter, with Jiangsu Huachang Chemical down 9.08 percent at 24.23 yuan after saying its net profit in the first quarter would drop 80 to 95 percent year on year.
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