Thursday 18 / April / 2024
Shanghai: Shanghai stocks recouped earlier losses to end flat on Tuesday, snapping a five-day losing streak, but lingering concerns over tighter financial regulations checked overall demand.
The blue-chip CSI300 index fell 0.2 per cent, to 3,352.53 points, while the Shanghai Composite Index added 0.1 per cent to 3,080.53 points.
The tech-heavy start-up board ChiNext briefly plumbed a 27-month low before closing up 0.8 percent.
The official Xinhua News Agency published editorials for the sixth day in a row that highlighted Beijing's concerted campaign to guard against financial risks.
Tougher financial regulations have been a major concern for investors, many of whom fear the measures could go too far and hurt growth in the world's second-largest economy.
In a bid to defuse asset bubbles and systemic risks, China has tightened its grip on the heated property market and other financial fronts ahead of a key party congress later this year.
Major state banks raised interest rates on home mortgages for first-time home buyers in Guangzhou, as part of China's efforts to control property prices, Shanghai Securities News reported.
"Those regulatory measures to curb financial risks are exceeding expectations, but chances are small for a major downturn in the benchmark indexes ahead of a key party congress later this year," said Yang Weixiao, an analyst with Founder Securities.
China's central bank on Tuesday skipped open market operations for a third straight trading day, further stoking concerns over the bank's shift to a tightening policy bias after years of ultra-loose settings.
The China Banking Regulatory Commission (CBRC) recently issued guidance for banks to strengthen their management of collateral to better service the real economy.
Investors are expected to remain cautious in the short term due to a lack of positive catalysts in the market, Yang added.
Most sectors were little changed in thin trading, while losses were led by infrastructure and healthcare stocks.
