SHANGHAI, Nov 24 (Reuters) - China stocks ended lower on Tuesday, as investors locked in profit following a recent rally, while the market showed scant reaction to news that U.S. President-elect Joe Biden was given the go-ahead to begin his White House transition.
** Analysts said a Biden presidency, which could mean more negotiation room for Washington and Beijing, would not make a big difference for China’s equities market, as they expected little change in U.S. policy towards China.
** The blue-chip CSI300 index closed 0.6% lower at 4,974.29, while the Shanghai Composite Index declined 0.3% to 3,402.82.
** The index retreated from its highest level in more than five years hit on Monday.
** The CSI300 real estate index and the CSI300 consumer discretionary index fell 0.8% and 1.6%, respectively.
** Jinke Property Group Co Ltd, Mango Excellent Media Co Ltd and Midea Group Co Ltd dropped between 2% and 5.7%.
** U.S. President Donald Trump tweeted that he had told his team “do what needs to be done with regard to initial protocols”, an indication he was moving toward a transition after weeks of legal challenges to the election results.
** “Whether it’s Trump or Biden, there would be limited impact on the A-share market,” said Liu Hongming, a fund manager at Beijing-based Dingxin Huijin Investment Management Co.
** “The Sino-U.S. strategic competition and friction will stay whoever the president is,” Liu added.
** Analysts continued to recommend cyclical players with low valuations on hopes of a coronavirus vaccine-led recovery.
** For the short term, due to the impact from bond defaults and tight liquidity conditions, investors should pay attention to stocks with solid fundamentals, low valuations and high dividend yields, Industrial Securities said in a report. (Reporting by Shanghai Newsroom, Editing by Sherry Jacob-Phillips)
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