China stocks end mixed, resources losses offset gains in financials

Reuters2021-05-20

SHANGHAI, May 20 (Reuters) - China stocks ended mixed on Thursday, as gains in financial firms offset losses in resources companies after Beijing vowed to stabilize commodities prices.

** The blue-chip CSI300 index rose 0.3%, to 5,186.41, while the Shanghai Composite Index dipped 0.1% to 3,506.94.

** The CSI300 energy index and the CSI A-share resource industries index were among the worst performing sectors, closing down 3.2% and 3.3%, respectively.

** Yanzhou Coal Mining Co Ltd, Jiangxi Copper Co Ltd and Zijin Mining Group Co Ltd shed between 4.3% and 8.1%.

** China will strengthen its management from both supply and demand sides to curb "unreasonable" increases in commodity prices, and prevent the pass-through to the consumer, the cabinet said on Wednesday.

** The comments drove prices of commodities including steel and iron ore to extend recent losses after surging this year on the back of post-lockdown recoveries in demand and easing global liquidity.

** Digital currency and blockchain-related stocks also pulled back after a cryptocurrency slump.

** However, analysts saw a very limited impact on the broader market from the cryptocurrency fallout.

** Chinese investors' participation in cryptocurrencies is very limited due to Beijing's continued clampdown, said Yan Kaiwen, an analyst with China Fortune Securities.

** Yan said Bitcoin mining has consumed too much of China's resources, including coal, at a time when Beijing seeks carbon neutrality.

** The CSI300 financials index added 1%, helped by gains for banking and securities firms.

** Around the region, MSCI's Asia ex-Japan stock index was barely changed , while Japan's Nikkei index closed up 0.19%.

** At 07:08 GMT, the yuan was quoted at 6.4405 per U.S. dollar, 0.1% weaker than the previous close of 6.4338.

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