February 1, 2018 / 7:25 AM / 6 months ago

China stocks fall, start-ups lead slide after profit warnings

* Shanghai stocks lower, blue-chip CSI300 index down

* Gains in Shanghai stocks led by Hebei Baoshuo Co Ltd and losses by Kingswood Enterprise Co Ltd

* China’s A-shares are at a 29.41 percent premium over H-shares

SHANGHAI, Feb 1 (Reuters) - China stocks fell on Thursday, with the start-up index closing at a more than six-month low, as investors dumped firms which are expected to report weak 2017 earnings and took profits ahead of the upcoming long Lunar New Year holidays.

The market was little fazed by a private manufacturing survey which suggested surprising resilience in the world’s second-largest economy at the start of 2018, despite tough crackdowns on air pollution and riskier types of financing. ** Growth in China’s manufacturing sector remained solid in January and held up better than analysts had expected, the business survey showed, as new business led factories to raise output at the start of the year. ** China’s start-up board ChiNext looked set for its worst weekly loss in 21 months, with a profusion of once-acquisitive companies issuing profit warnings as they bite the bullet after overpaying for their purchases.

** At the close, the Shanghai Composite index was down 34.59 points or 0.99 percent at 3,446.24, losing ground for the fourth session. ** The blue-chip CSI300 index was down 0.71 percent, with the financial sector sub-index higher by 0.41 percent, the consumer staples sector down 1.07 percent , the real estate index down 0.13 percent and healthcare sub-index down 1.36 percent. ** The smaller Shenzhen index ended down 3.02 percent and the start-up board ChiNext Composite index was weaker by 2.17 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.17 percent while Japan’s Nikkei index closed up 1.68 percent. ** At 0702 GMT, the yuan was quoted at 6.2975 per U.S. dollar, 0.18 percent weaker than the previous close of 6.2865. ** The largest percentage gainers in the main Shanghai Composite index were Hebei Baoshuo Co Ltd up 8.06 percent, followed by Besttone Holding Co Ltd gaining 6.39 percent and Tibet Summit Resources Co Ltd up by 5.59 percent. ** The largest percentage losses in the Shanghai index were Kingswood Enterprise Co Ltd down 10.11 percent, followed by Shenzhen Geoway Co Ltd losing 10.07 percent and Hangzhou Advance Gearbox Group Co Ltd down by 10.05 percent. ** So far this year, the Shanghai stock index is up 5.25 percent, the CSI300 is up 5.3 percent this year, while China’s H-share index listed in Hong Kong is up 15.8 percent. ** About 26.05 billion shares were traded on the Shanghai exchange, roughly 130.9 percent of the market’s 30-day moving average of 19.90 billion shares a day. The volume in the previous trading session was 20.73 billion. ** As of 0703 GMT, China’s A-shares were trading at a premium of 29.40 percent over the Hong Kong-listed H-shares. ** The Shanghai stock index is above its 50-day moving average and above its 200-day moving average. ** The price-to-earnings ratio of the Shanghai index was 15.89 as of the last full trading day while the dividend yield was 1.8 percent. ** So far this week, the market capitalisation of the Shanghai stock index has fallen by -2.01 percent to 30.69 trillion yuan. (Reporting by Shanghai Newsroom; Editing by Kim Coghill)

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