Mainland stocks fall the most in two weeks

Source:Reuters-Global Times Published: 2017/8/24 17:58:40

Chinese mainland stocks fell the most in nearly two weeks on Thursday, as China Unicom tumbled after rallying earlier in the week as excitement over State enterprise reforms cooled.

Investors were also cautious as the Shanghai benchmark neared the 3,300-point-mark, a level that has proven to be a stiff hurdle with three failed attempts to breach it over the past nine months.

The blue-chip CSI300 index fell 0.57 percent, closing at 3,734.65 points, while the Shanghai Composite Index lost 0.49 percent to 3,271.51 points.

Stocks fell across the board, with brokerage stocks pulling back sharply following the previous day's gains.

After a calmer morning session, sentiment soured as China Unicom extended its losses in afternoon trading, down 6.70 percent at close.

The stock spiked by its daily limit of 10 percent on Monday and Tuesday, before slipping 0.88 percent on Wednesday.

"State-owned enterprise [SOE] restructuring remains an attractive investment theme, and we have been looking for the next company that will likely undergo restructuring," said Wu Kan, head of equity trading at Shanshan Finance.

The Ministry of Finance said on Thursday that profits at China's State-owned firms rose 23.1 percent in the first seven months of 2017 from a year earlier.

The Securities Times newspaper reported that the government has already selected SOEs to take part in a third round of its mixed-ownership reform program.

Raw material shares closed down 0.60 percent.

Wu said that the recent sharp correction in cyclical stocks could provide buying opportunities, if coming economic indicators point to continued recovery.

Posted in: MARKETS

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