China stocks slip but set to end the week higher, resources firms lend support

SHANGHAI, July 21 (Reuters) – China’s major stock indexes
edged lower early on Friday, but looked set to end higher for
the week, aided by strong gains in cyclicals including raw
material firms.

Nearly all main sectors were poised for gains in the week,
with material shares the best performers, helped by expectations
China would continue to push supply-side reforms and keep its
economy largely stable.

An index tracking major raw material firms has
leapt nearly 5 percent this year, far outperforming the broader
market, after they forecast surges for mid-year earnings growth.

Such firms also received support from China’s
stronger-than-expected gross domestic product data, released on
Monday, which boosted expectations of increasing raw material
demand.

China’s economy expanded 6.9 percent in the second quarter,
defying expectations for a slight loss of momentum.

The CSI300 index fell 0.1 percent to 3,745.18
points at 2:01 GMT, while the Shanghai Composite Index
lost 0.1 percent to 3,241.46 points.

The Hang Seng index added 0.1 percent, to 26,767.88
points, while the Hong Kong China Enterprises Index lost
0.2 percent, to 10,827.80 points.
(Reporting by Luoyan Liu and Andrew Galbraith; Editing by Sam
Holmes)

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