China stocks fall as investors book profit in EV, healthcare firms

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  • SSEC -0.29%, CSI300 -0.58%, HSI +0.02%
  • Real estate shares gain on policy easing expectations
  • Traders to favour bonds, commodities - BOCOM International

SHANGHAI, Jan 19 (Reuters) - China stocks fell on Wednesday, dragged down by electric vehicle makers and healthcare firms as investors booked profits, while worries over a slowing economy also weighed on market sentiment.

** At the midday break, the Shanghai Composite index (.SSEC) was down 0.29% at 3,559.69 and China's blue-chip CSI300 index (.CSI300) was down 0.58%.

** Leading the losses, the healthcare sub-index (.CSI300HC) fell 2.11%, while the new energy vehicle sector (.CSI399976) lost 3.73%.

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** Chinese H-shares listed in Hong Kong (.HSCE) rose 0.12% to 8,459.53, while the Hang Seng Index (.HSI) was up 0.02% at 24,117.26.

** The smaller Shenzhen index (.SZSC) was down 0.92%, the start-up board ChiNext Composite index (.CNT) was weaker by 1.96% and Shanghai's tech-focused STAR50 index (.STAR50) was down 1.19%​.

** Shares of Chinese real estate developers surged after the country's central bank pledged to roll out more policy measures to stabilise the economy.

** Dalian iron ore jumped nearly 5%, leading ferrous materials' rebound in top steel producer China following three sessions of losses, on bets of more policy easing.

** Expectations of easing from the People's Bank of China while bracing for tighter U.S. monetary policy "will spur traders to punt on rates-sensitive assets such as commodities and bonds," Hong Hao, head of research at BOCOM International, wrote in a research note.

** Around the region, MSCI's Asia ex-Japan stock index (.MIAPJ0000PUS) was weaker by 0.57%, while Japan's Nikkei index (.N225) was down 2.30%.

** The yuan was quoted at 6.3523 per U.S. dollar, 0.02% firmer than the previous close of 6.3537.

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Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu

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