Mainland shares follow regional peers lower, led by materials stocks

Source:Reuters-Global Times Published: 2017/8/10 18:18:39

Chinese mainland stocks ended lower as investors took a cue from weak regional and global markets, selling off shares in materials firms that had benefited from a recent rally.

The blue-chip CSI300 index fell 0.41 percent to 3,715.92 points, while the Shanghai Composite Index lost 0.42 percent to 3,261.75 points.

The blue-chip stock index futures for August fell 0.5 percent to 3,701, 14.95 points below the current value of the underlying index.

Analysts in China, unlike elsewhere, did not see tensions between North Korea and the US as a cause for market jitters.

"The global correction is putting some pressure on shares, and some materials shares have risen sharply recently," said Li Jian, an analyst at Great Wall Securities.

Shares in major materials firms fell sharply, with Aluminum Corp of China closing down 4.3 percent.

In a filing to the Shanghai Stock Exchange Thursday, the company cautioned investors to be aware of market volatility and secondary market trading risks.

It said expectations had changed and that rises in the price of electricity could increase costs.

Shares in steel and copper producers were also hit even as prices of those commodities remained strong.

Jiangxi Copper Co closed down 4.3 percent, and Baoshan Iron & Steel Co fell 4.8 percent.

The materials sub-index, which had risen more than 30 percent since the beginning of June, lost 2.4 percent, weighed down by losses in steel producers.

"In the past several months, steel shares have gone straight up, so an appropriate correction is healthy and reasonable," said Huang Xiaobin, an analyst at Huatai Securities in Shenzhen.

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