China stocks dip as consumer firms drag, NEV makers extend drop

SSEC -0.13%, CSI300 -0.37%, HSI flat

Consumer staple firms, industrials drop

NEV companies fall sharply for second day

SHANGHAI, Nov 26 (Reuters)China’s benchmark stock index slipped on Thursday, weighed down by consumer staples and industrial firms, while new-energy vehicle (NEV) shares extended their fall over news of probes by local governments into their projects.

** At the midday break, the Shanghai Composite index .SSEC was down 0.13% at 3,358.01 points.

** China’s blue-chip CSI300 index .CSI300 was down 0.37%, with the consumer staples sector .CSI000912 down 0.38%, the real estate index .CSI000952 down 0.58% and the healthcare sub-index .CSI300HC down 0.88%.

** Industrial firms .CSI000910 fell 0.83%, but Huaitai Securities analysts said overall domestic demand remains strong despite some moderation in high-frequency indexes since October.

** “Although there has been a marginal weakening of production activity since mid-November, many indexes including transactions, prices and inventories reflect terminal demand remains relatively strong,” they said.

** The new energy vehicle sub-index .CSI399976 fell 2.51%, on top of a 2.16% drop a day earlier on news that China’s state planner has told local governments to investigate new energy vehicle (NEV) projects linked to property developers Evergrande Group 3333.HK and Shenzhen Baoneng.

** Chinese H-shares listed in Hong Kong .HSCE rose 0.6% to 10,621.14, but the Hang Seng Index .HSI was barely higher at 26,672.52.

** The smaller Shenzhen index .SZSC was down 0.73%, the start-up board ChiNext Composite index .CNT was weaker by 0.52% and Shanghai’s tech-focused STAR50 index .STAR50 was down 0.3%​.

** Around the region, MSCI’s Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.57% while Japan’s Nikkei index .N225 was up 0.54%.

** The yuan CNY=CFXS was quoted at 6.568 per U.S. dollar, 0.18% stronger than the previous close of 6.58.

** So far this year, the Shanghai stock index is up 10.1%​ and the CSI300 has risen 19.4%, while China’s H-share index listed in Hong Kong is down 4.9%. Shanghai stocks have risen 4.14% this month.

(Reporting by Andrew Galbraith; Editing by Vinay Dwivedi)

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