Stocks closed mixed, eyes on Fed
China’s A-share markets finished Thursday mixed as investors looked for direction after minutes from the US Federal Reserve highlighted the downside risk to the economy.
The benchmark Shanghai Composite Index slipped 0.34 percent, or 9.42 points, to finish at 2,751.80, after a volatile day.
Property developers led the losses, with shares of the Pearl River Enterprises Group Co, a Guangzhou-based pioneer in the real estate industry, dropping 5.02 percent to 4.92 yuan (73 US cents).
Iron and steel manufacturers, building materials companies as well as import and export corporations also declined.
The smaller Shenzhen Component Index closed down 0.26 percent to end at 8,451.71 points, while the ChiNext Index, China’s Nasdaq-style board of growth enterprises, was up 0.3 percent to 1,412.54 points.
The combined turnover of the two bourses came to 618.7 billion yuan, up from 499.2 billion yuan the previous trading day.
Huang Cendong, an analyst at Sinolink Securities, told Caixin.com that investor sentiment was heavily influenced by the Fed’s overnight release.
Minutes from the US central bank’s January meeting weighted various headwinds to growth, such as the possibilities of “a sharper-than-expected” slowdown in global economic development, particularly in China and Europe.
The Fed saw the balance sheet reduction ending and reiterated its new "patient" policy stance, saying it expected to keep rates steady for now.