China stocks barely moved on Thursday as investors weighed the implications of a slew of economic data released this week. The bluechip CSI300 index rose 0.1 percent, to 3,318.60, while the Shanghai Composite Index ended at 3,084.46 points, almost exactly where it closed on Wednesday. Market participants were not affected by the third and final US presidential debate that took place during morning trading hours in Asia.
Investors were taking stock of China's recent economic data, including strong-than-expected loan growth in September, and third-quarter economic growth of 6.7 percent, which was in line with expectations. The steady economic growth appeared to be underpinned by strong government spending, and some economists believe Beijing has had to "double down" on stimulus this year to meet its official growth range of 6.5 to 7 percent.
S&P Global Ratings said on Thursday that the surge in credit by Chinese banks since early 2015 has supported their profitability, but it has also hit their capitalisation, as well as the funding and liquidity profiles. Most sectors were little changed, with real estate stocks steadying even as Chinese cities took measures to root out irregular property market activities.
There was little reaction to the third, and final US presidential debate that took place during morning trading hours in Asia, with recent polls showing Democrat Hilary Clinton widening her lead over Republican Donald Trump. China's state planning agency raised retail prices of gasoline starting Thursday after a rally in the international crude oil price, which hovered near a 15-month high.
S&P Global Ratings said in a report on Thursday that the surge in credit by Chinese banks since early 2015 has supported the profitability of the country's banks, but it has also hit their capitalisation, as well as the funding and liquidity profiles. "We see a risk of a sudden bottleneck in credit supply among many of the top 50 banks over the next two or three years," said S&P's senior director Liao Qiang. "As a result, we expect downward pressure on credit profiles of these banks for the next two years, at least."