China stocks slip on profit taking; Hong Kong flat

** For the short term, due to the impact from bond defaults and tight liquidity conditions, investors should pay attention to stocks with solid fundamentals, low valuations and high dividend yields, Industrial Securities said in a report. ** The Hang Seng index added 0.1%, to 26,498.67 points, while the Hong Kong China Enterprises index lost 0.4%, to 10,622.94 points.

China stocks eased on Tuesday, as investors booked profits following recent strong gains, while there was muted reaction to the development that U.S. President-elect Joe Biden was given the go-ahead to begin his White House transition. ** The CSI300 index fell 0.3%, to 4,987.81 points at the end of the morning session, while the Shanghai Composite Index lost 0.1%, to 3,412.08 points.

** The retreat came after the blue-chip index scaled a more than 5-year high on Monday. ** The CSI300 real estate index and the CSI300 consumer staples index fell 0.8% and 0.7%, respectively by midday.

** U.S. President Donald Trump tweeted that he had told his team "do what needs to be done with regard to initial protocols", an indication he was moving toward a transition after weeks of legal challenges to the election results. ** Analysts said a Biden presidency, which could mean more negotiation room for Washington and Beijing, would not make a big difference for China's equities market, as they expected little change in U.S. policy toward China.

** "Whether it's Trump or Biden, there would be limited impact on the A-share market," said Liu Hongming, a fund manager at Beijing-based Dingxin Huijin Investment Management Co. ** "The Sino-U.S. strategic competition and frictions will stay whoever the president is," Liu added.

** Analysts continued to recommend cyclical players with low valuations on hopes of a coronavirus vaccine-led recovery. ** For the short term, due to the impact from bond defaults and tight liquidity conditions, investors should pay attention to stocks with solid fundamentals, low valuations and high dividend yields, Industrial Securities said in a report.

** The Hang Seng index added 0.1%, to 26,498.67 points, while the Hong Kong China Enterprises index lost 0.4%, to 10,622.94 points.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)