November 6, 2018 / 4:25 AM / 10 months ago

China shares fall as technology board supply concerns weigh

* SSEC -1.1 pct, CSI300 -1.5 pct, HSI -0.2 pct

* Apple suppliers fall on iPhone XR report

* Yuan slightly stronger despite weaker fixing

SHANGHAI, Nov 6 (Reuters) - Shares in China extended losses on Tuesday amid concerns that a new technology board could put pressure on share valuations, and as Apple Inc suppliers in Hong Kong fell on a report that the company cancelled increased production for its iPhone XR.

** At the midday break, the Shanghai Composite index was down 28.08 points or 1.05 percent at 2,637.35 points. ** China’s blue-chip CSI300 index was down 1.46 percent, with its financial sector sub-index lower by 1.18 percent, the consumer staples sector down 2.41 percent, the real estate index down 0.18 percent and the healthcare sub-index down 0.78 percent. ** Chinese H-shares listed in Hong Kong were flat at 10,543.84, while the Hang Seng Index was down 0.15 percent at 25,894.70. ** The smaller Shenzhen index was down 1.61 percent and the start-up board ChiNext Composite index was weaker by 1.48 percent. ** Electronics firms have been under pressure amid concern that plans to launch a new technology board could lead to a flood of new supply of tech firm listings. An index tracking China’s major IT firms fell 2.22 percent. ** Apple Inc supplier Sunny Optical Technology Group Co was the worst-performing Hang Seng constituent in the morning session. The company’s shares fell 7.01 percent after the Nikkei financial daily reported Apple had told smartphone assemblers to halve plans for additional production lines for its new iPhone XR. An index in Hong Kong tracking the IT sector fell 1.1 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.05 percent while Japan’s Nikkei index was up 0.91 percent. ** The yuan was quoted at 6.9225 per U.S. dollar, 0.05 percent firmer than the previous close of 6.9262, despite the People’s Bank of China setting a slightly weaker midpoint for the yuan’s daily trading band, at 6.9075. ** The largest percentage gainers in the main Shanghai Composite index were Jiangsu Sunrain Solar Energy Co Ltd, up 10.14 percent, followed by Shanghai DaZhong Public Utilities Group Co Ltd, gaining 10.13 percent and Shenzhen Geoway Co Ltd, up by 10.13 percent. ** The largest percentage losses in the Shanghai index were Jiangsu Hongtu High Technology Co Ltd, down 10.02 percent, followed by Eastern Gold Jade Co Ltd, losing 9.95 percent and Argus Shanghai Textile Chemicals Co Ltd , down by 9.52 percent. ** So far this year, the Shanghai stock index is down 19.4 percent, while China’s H-share index is down 9.9 percent. Shanghai stocks have risen 2.41 percent this month. ** The top gainers among H-shares were SINOPHARM GROUP CO LTD , up 2.12 percent, followed by China Telecom Corp Ltd , gaining 1.87 percent and CRRC Corp Ltd, up by 1.7 percent. ** The three biggest H-shares percentage decliners were Byd Co Ltd, which has fallen 3.00 percent, Great Wall Motor Co Ltd, which has lost 2.8 percent and China Galaxy Securities Co Ltd, down by 2.6 percent. ** About 10.23 billion shares have traded so far on the Shanghai exchange, roughly 68.4 percent of the market’s 30-day moving average of 14.95 billion shares a day. The volume traded was 19.38 billion as of the last full trading day. ** As of 04:05 GMT, China’s A-shares were trading at a premium of 19.50 percent over the Hong Kong-listed H-shares. ** The Shanghai stock index is below its 50-day moving average and below its 200-day moving average. ** The price-to-earnings ratio of the Shanghai index was 11.16 as of the last full trading day, while the dividend yield was 2.8 percent.

Reporting by Andrew Galbraith

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