China stocks fall after hike in market rates, mixed economic data

SHANGHAI, Dec 14 (Reuters) - China stocks fell on Thursday, after the country's central bank nudged up money market rate following the widely expected U.S. rate hike, and as mixed data reinforced signs of a modest slowdown in the Asian economic powerhouse.

China's central bank lifted money market rates as authorities sought to defuse financial risks without imperilling the economy.

The rate move shows two things... First, Fed policy is still one of the parameters to influencing PBOC's decision making," said Tommy Xie, economist at OCBC, in a note to clients.

"Second, China shows no signs of fatigue in financial de-leveraging."

Also denting sentiment, data on Thursday showed China's industrial output and retail sales grew at a steady pace last month, while fixed asset investment cooled slightly, reinforcing signs of a modest slowdown in the world's second-biggest economy.

** The Fed raised rates for the third time this year on Wednesday while sticking to its projection for three rate increases next year.

** At the close, the Shanghai Composite index was down 9.46 points or 0.29 percent at 3,293.58.

** The blue-chip CSI300 index was down 0.57 percent, with its financial sector sub-index lower by 0.92 percent, the consumer staples sector up 0.03 percent, the real estate index down 0.23 percent and healthcare sub-index down 0.12 percent.

** The smaller Shenzhen index ended unchanged for the day and the start-up board ChiNext Composite index was weaker by 0.65 percent.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.12 percent while Japan's Nikkei index closed down 0.28 percent .

** At 07:01 GMT, the yuan was quoted at 6.6108 per U.S. dollar, 0.13 percent firmer than the previous close of 6.6195.

** The largest percentage gainers in the main Shanghai Composite index were Henan Ancai Hi-tech Co Ltd up 10.06 percent, followed by Shanxi Guoxin Energy Corp Ltd gaining 10.05 percent and Wenyi Suntech Co Ltd up by 10.02 percent.

** The largest percentage losses in the Shanghai index were NARI Technology Co Ltd down 4.52 percent, followed by Inner Mongolia North Hauler Joint Stock Co Ltd losing 3.67 percent and Huatai Securities Co Ltd down 3.59 percent.

** This year, the Shanghai stock index is up 6.42 percent, the CSI300 is up 21.7 percent this year, while China's H-share index listed in Hong Kong is up 22.6 percent. Shanghai stocks have declined 0.43 percent this month.

** About 12.05 billion shares were traded on the Shanghai exchange, roughly 71.1 percent of the market's 30-day moving average of 16.94 billion shares a day. The volume in the previous trading session was 11.20 billion.

** As of 07:02 GMT, China's A-shares were trading at a premium of 28.79 percent over the Hong Kong-listed H-shares.

** The Shanghai stock index is below its 50-day moving average and above its 200-day moving average.

** The price-to-earnings ratio of the Shanghai index was 14.81 as of the last full trading day while the dividend yield was 2 percent.

** So far this week, the market capitalisation of the Shanghai stock index has risen by 0.46 percent to 28.77 trillion yuan. (Reporting by Luoyan Liu and John Ruwitch; Editing by Richard Borsuk)