Economic data fail to lift index

SHANGHAI'S key stock index closed almost flat yesterday despite positive macro-economic figures released earlier in the day which pointed to a firmer economic recovery for China.

The Shanghai Composite Index dipped 0.21 percent, or 6.95 points, to close at 3,247.32, sending the gauge to a 2.1-percent weekly loss. Turnover shrank to 107.6 billion yuan (US$15.82 billion) from 112.6 billion yuan on Thursday.

China's industrial production climbed 19.2 percent in November from a year ago, the biggest increase since June 2007, the National Bureau of Statistics said in Beijing yesterday. Exports slid 1.2 percent last month on an annual basis, the least in 13 months, the General Administration of Customs said.

The figures signaled a firmer recovery, boosted by the government's 4-trillion-yuan stimulus package and record bank loans. However, a shrinking turnover indicated that data showing faster factory output, improving trade and more bank lending still failed to boost investor enthusiasm, analysts said.

"Previous gains seemed to be excessive compared with the pace of the economic recovery," said Chen Danrong, a Shiji Investment Management Co analyst.

Analysts said investors were more concerned with a second batch of eight start-ups which will start their initial public offering subscriptions next Wednesday to raise a combined 1.6 billion yuan as this may mean a glut of shares.

The Industrial and Commercial Bank of China Ltd shed 0.2 percent to 5.23 yuan, and China Construction Bank Corp eased 0.2 percent to 6.03 yuan. China Merchants Bank Co gained 0.7 percent to finish at 17.62 yuan.