Financial sector pulls down mainland stocks

Source:Reuters-Global Times Published: 2017/8/9 17:53:39

Banks dragged Chinese mainland's stock markets lower on Wednesday amid concerns that regulators will continue to clamp down on debt risks, but strong gains in consumer staples left major indexes only slightly lower on the day.

The benchmark Shanghai Composite Index shed 0.19 percent, ending at 3,275.57 points, while the smaller Shenzhen Component Index gained 0.46 percent to 10,544.59 points.

The financials sub-index fell 1.1 percent, with mild consumer inflation data released earlier in the day giving policymakers plenty of room to maintain controls imposed earlier this year as they seek to contain risks from a rapid build-up in debt.

"Today's inflation numbers were a bit better than expectations, and show that there is basically no inflation pressure. It's likely that the central bank will continue with monetary policy that's neither tight nor loose," said Zhang Gang, an analyst at China Central Securities.

The blue-chip CSI300 index, which gauges large companies listed on the Shanghai and Shenzhen bourses, slightly eased 0.03 percent to 3,731.04 points.

Consumer staples remained strong, with the sub-index gaining 2.7 percent for the day.

Shares of materials companies also bounced back after being hit by investor's profit-taking in the morning session.

Posted in: MARKETS

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