China shares end flat as market eyes Fed outcome, Sino-U.S. meeting

Reuters · 03/17/2021 07:38
China shares end flat as market eyes Fed outcome, Sino-U.S. meeting

SHANGHAI, March 17 (Reuters) - China stocks ended flat on Wednesday as investors shifted focus to the outcome of a U.S. Federal Reserve policy meeting, to see if the central bank could start raising interest rates sooner than expected.

** Fed policymakers are expected this week to forecast that the U.S. economy will grow in 2021 at the fastest rate in decades as the COVID-19 vaccination campaign gathers pace and a $1.9 trillion relief package washes through to households. nL1N2L82OT

** At the close, the Shanghai Composite index .SSEC was down 0.03% at 3,445.55, while the blue-chip CSI300 index .CSI300 was up 0.42% to 5,100.86.

** The financial sector sub-index .CSI300FS was lower by 1.42%, the consumer staples sector .CSI000912 rose 1.58%, the real estate index .CSI000952 fell 0.96% and the healthcare sub-index .CSI300HC gained 0.49%.

** The smaller Shenzhen index .SZSC ended up 0.97% and the start-up board ChiNext Composite index .CNT was higher by 1.198%.

** Gains were driven by agricultural shares after the government unveiled measures to support the development of Taiwan-funded companies in agriculture and forestry in mainland China.

** The sector also gained support after the central Henan province said it would strictly prevent illegal genetically modified seeds from entering the market this year.

** At the close, Winall Hi-tech Seed Co Ltd 300087.SZ jumped 7.7%, Hefei Fengle Seed Co Ltd 000713.SZ leapt 6.4%, and Zhongnongfa Seed Industry Co Ltd 600313.SS jumped 4.9%.

** Some investors said they would closely watch the first high-level, in-person contact later this week between Beijing and Washington since U.S. President Joe Biden took office. Sino-U.S. relations have been one of the key factors influencing Chinese financial markets over the past few years.

** Separately, Chinese companies targeted by a sweeping investment ban imposed by former U.S. President Donald Trump are considering suing the U.S. government after a federal judge on Friday suspended a similar blacklisting for Beijing-based smartphone maker Xiaomi. nL1N2LD2YY


(Reporting by Winni Zhou and Andrew Galbraith; Editing by Ramakrishnan M.)

((winni.zhou@thomsonreuters.com; +86 21 2083 0100; Reuters Messaging: winni.zhou.thomsonreuters.com@reuters.net))