Mainland stocks suffer losses on profit taking

Source:Reuters-Global Times Published: 2017/9/7 17:48:40

Chinese mainland stocks fell on Thursday, as profit taking in resource shares following their recent rally and weakness in the banking sector offset strong gains in real estate companies.

The blue-chip CSI300 index fell 0.51 percent, to 3,829.87 points, while the Shanghai Composite Index lost 0.59 percent to 3,365.50 points.

However, the Shanghai index remained firmly above the 3,300 mark for the 10th session in a row.

The real estate sector led the gains with a 4.50 percent jump, posting its best day in two months.

Banking and energy firms dragged on the market, with losses of 0.90 percent and 1.50 percent, respectively.

"Chinese stocks are expected to rise at a more balanced pace, with worries over 'new economy sector' eased as those growth firms reported solid half-year earnings," Zhou Guang, an analyst with China International Capital Corporation Limited, wrote in a recent note.

Tech-heavy start-up index ChiNext, which gauges growth stock price movements, has risen 2.20 percent so far this month following a gain of 6.50 percent in August. Expectations that economic growth will remain firm through to the end of the year have supported equities, Zhou said.

China's economy has surprised many by growing at a solid clip this year despite early worries that a crackdown on debt and curbs on the property market will knock output.

There are also hopes that regulators may loosen their grip on the market.

Stock market recovery in the Chinese mainland has created the condition for regulators to further relax rules on stock index futures trading and fully exit emergency measures adopted during the stock market turbulence of 2015, the Economic Information Daily reported on Thursday.

Posted in: MARKETS

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