A-shares retreat, sentiment fades on NBS figures

Stock markets in Shanghai and Shenzhen contracted Monday as investors digested an ambiguous batch of economic data.

The Shanghai Composite Index finished trading at 2,241.92, down 0.22 percent, or 4.91 points; while the Shenzhen Component Index closed at 9,014.28 after shedding 0.63 percent, or 56.88 points.

Combined trading volume at the two exchanges totaled 169 billion yuan ($27.49 billion), down from Friday's 191 billion yuan total as investors proved reluctance to make significant moves.

Both indices opened lower and retreated in early trading as downward momentum from securities, real estate development, coal and nonferrous metals stocks took its toll. With financial shares sinking deeper into losses for most of the day, the Shanghai Composite bottomed out at an intra-day low of 2,230 before strong performances from communications and automobile stocks moderated losses.

In general, most trading lacked clear direction Monday as marco indicators published that day by the National Bureau of Statistics (NBS) painted a somewhat murky picture of conditions in the domestic economy. On the one hand, industrial production for April was shown rising 9.3 percent year-on-year, outpacing the 8.9 percent annual rise recorded in March but still short of most forecasts. Meanwhile, April retail sales expanded 12.8 percent year-on-year, picking up steam from March's 12.6 percent increase.

Analysts were mostly of the opinion that the markets would quickly bounce back from this latest raft of indicators. Some suggested that A-shares had little room to fall further and could soon expect a corrective upswing.

But with many investors skeptical about China's growth prospects following the NBS's data release, real estate developers broadly declined on the day. China Vanke Co and Poly Real Estate Group Co gave up 1.11 percent and 1.32 percent to 11.62 yuan and 11.95 yuan respectively.

Coal stocks picked up again with their recent string of losses. Qinghai Jinrui Mineral Development Co tumbled 2.12 percent to 9.71 yuan.

On the positive side, the communications sector walked away with respectable gains. Industry leader ZTE Corp surged 4.32 percent to 13.53 yuan.

Navigations shares were lifted as well following reports that mapping services provider AutoNavi had been bought out by e-commerce conglomerate Alibaba last week. North Navigation Control Technology Co jumped past the 10-percent daily limit to 13.15 yuan.

Individually, Ping An Insurance Group Co ditched 2.21 percent to 40.19 yuan after China's securities watchdog announced that it would ban the group's brokerage unit from underwriting initial public offering for three months.