SHANGHAI: China stocks reversed earlier gains to close lower on Monday, weighed down by industrial and healthcare firms, after the country reported a weaker-than-forecast GDP growth for the third quarter. The blue-chip CSI300 index fell 0.8%, to 4,755.49, while the Shanghai Composite Index lost 0.7% to 3,312.67. The CSI300 index had jumped as much as 1.2% and the Shanghai Composite 1% before changing course.
The tech-heavy start-up board ChiNext fell 1.3%, while the STAR50 index shed 1.8%. Dragging down the market, the CSI300 healthcare index declined 2.5%, while the CSI3000 industrials index retreated 1.3%.
China's major indexes have strengthened after the Golden Week holiday, with the CSI300 rising nearly 4% so far this month, helped in part to Beijing's continued policy support for its capital markets and economy. Going forward, the A-share market could remain rangebound below its July highs on uncertainties including the US election, Jin Jing, an analyst with Caitong Securities, said, adding that further monetary loosening this year is quite unlikely given the country's robust economic recovery.
China's GDP grew 4.9% in July-September from a year earlier, official data showed, slower than the median 5.2% forecast by analysts in a Reuters poll and following 3.2% growth in the second quarter. Gross domestic product (GDP) grew 4.9% in July-September from a year earlier, official data showed, slower than the 5.2% forecast by analysts in a Reuters poll but faster than the second quarter's 3.2% growth.
As long as the trend of economic recovery remains, the lower-than-expected data today could be easily digested by the market, said Wan Kelin, an analyst at Huaxi Securities. Markets also fell as investors booked profits on upbeat news that China will give Shenzhen more autonomy for market reform and integration, Wan said.
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