SHANGHAI, Nov 30 (Reuters) - China stocks ended lower on
Monday, but posted gains in November, underpinned by stocks in
traditional industries, as more data pointed to a continued
recovery in the world's second-largest economy against the
backdrop of the COVID-19 pandemic.
** The blue-chip CSI300 index fell 0.4%, to
4,960.25, while the Shanghai Composite index slipped
0.5% to 3,391.76, reversing earlier gains as investors booked
** Sentiment was hit by concerns over Sino-U.S. tensions.
** The Trump administration is poised to add China's top
chipmaker SMIC and national offshore oil and gas
producer CNOOC to a blacklist of alleged Chinese
military companies, according to a document and sources.
** Though for the month CSI300 gained 5.6%, while SSEC added
5.2%, both posted their biggest monthly advance since July.
** Leading the gains for the month, the Shanghai SE50 index
, which tracks the 50 most representative traditional
stocks on the Shanghai Stock Exchange, rallied 5.8%.
** China's factory activity expanded at the fastest pace in
more than three years in November, while growth in the services
sector also hit a multi-year high, as the country's economic
recovery from the virus outbreak stepped up.
** Upbeat data released on Monday suggested the world's
second-largest economy was on track to become the first to
completely shake off the drag from widespread industry
shutdowns, with recent production data showing manufacturing now
at pre-pandemic levels.
** The main reason for the strong rally was China's
continued recovery, said Zhang Gang, an analyst with China
** The cyclicals rally would also continue for a while as
their valuations remain low, at least before China's Lunar New
Year holiday if investors do not find good opportunities in
growth players, Zhang added.
(Reporting by Shanghai Newsroom; Editing by Shounak Dasgupta)