Mainland stocks end flat as stronger airlines, resources offset by losses in banks

Source:Reuters-Global Times Published: 2017/8/30 17:38:40

Chinese mainland stocks ended flat on Wednesday, as strong gains in airline operators and resources firms were offset by weakness in banking stocks with investors awaiting first-half results for some of the country's biggest banks.

The blue-chip CSI300 index was almost unchanged at 3,834.30 points, while the Shanghai Composite Index was also flat at 3,363.63 points.

As the largely bright half-year company earnings season draws to a close, investors are pondering if the strong growth is sustainable.

Chinese brokerage Guosen Securities is bullish on China stocks, after the Shanghai market held firmly above the 3,300-point-mark this week, a level previously seen as a strong resistance.

"Economic recovery is expected to kick A shares into a bull market," Guosen analyst Yan Xiang said in its latest strategy report.

"Currently, we could be at the turning point of the economic cycle," Yan said, citing strong economic data, robust commodity prices and modest inflation.

Airline operators surged, as investors bet that the sector - typically burdened with heavy US dollar debt - would benefit from a strong yuan.

Resources firms also helped lift the market, with an index tracking material players up 1.6 percent, as a weaker greenback generally makes dollar-priced metals cheaper for non-US investors, boosting demand.

But banking stocks lost 0.9 percent following strong gains recently, with some investors pocketing gains before some of the nation's biggest lenders release their half-year results on Wednesday after market close.

Posted in: MARKETS

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