China stocks retreat from four-week high as market weighs earnings setback, geopolitical risks
- The CSI 300 index declined 0.4 per cent, after logging their best week since mid-February
- Earnings reports for 2020 so far have trailed analysts’ estimates by about 14 per cent; US and Japan sent destroyer into South and East China seas
The CSI 300 index, which tracks the biggest companies on Shanghai and Shenzhen bourses, retreated 0.4 per cent to 5,140.34 as trading resumed after a public holiday on Monday. The gauge climbed 2.45 per cent last week, also the biggest weekly advance since February 12, according to Bloomberg data.
About one-third of the 1,500-plus members of the Shanghai Composite Index have published their annual reports, with earnings trailing analysts’ estimates by 14 per cent, according to Bloomberg data. Profits fell by an average 8 per cent from a year earlier.
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“The stock market is readjusting after the strong rally last week,” said Liu Chenming, co-chief strategist at TF Securities. “The first half of April, when forecast reports for first-quarter results will be released, is a rebound window. In a medium term, we will see more digestion on stock valuation.”
