China stocks were little changed on Wednesday after data showed the Chinese economy is stabilising, as expected. The bluechip CSI300 index fell 0.2 percent, to 3,316.24, while the Shanghai Composite Index was flat at 3,084.72 points. There was little surprise from China's third-quarter gross domestic product (GDP) data. The economy grew 6.7 percent from a year earlier, steady from the previous quarter, as increased government spending and a property boom offset stubbornly weak exports.
"The upshot from today's data is that economic activity seems to be holding up reasonably well, with few signs that a renewed slowdown is just around the corner," wrote Julian Evans-Pritchard, China economist at Capital Economics. Still, he said, "as the boost from policy stimulus begins to wear off, probably at some point early next year, continued structural drags mean the economy is set to begin slowing again."
SOE reform remains a strong investment theme, with investors continuing to focus on companies likely benefit to from Beijing's structural and state-owned enterprise (SOE) reforms. Most sectors were basically flat, with infrastructure stocks leading the gains.
An index that tracks China's non-ferrous metal producers rose after Beijing said it would strictly control the expansion of the industry, encourage continued consolidation and boost proven ore reserves by 2020.
Coal miners, including Yanzhou Coal Mining and Xishan Coal jumped as futures contracts of coal and coking coal continue to rise on the back of China's push to reduce coal producing capacity. SOE reform remains a strong investment theme, with major carriers, including China Eastern Airlines, China Southern Airlines and Air China, all rising sharply, after China set up a body to oversee the aviation supply sector as part of ongoing reforms.