Mainland stocks slip over liquidity concerns

Source:Reuters-Global Times Published: 2017/9/19 17:23:40

Chinese mainland's stocks slid on Tuesday, as caution prevailed over potentially tight liquidity before the National Day holiday.

The blue-chip CSI300 index fell 0.29 percent to 3,832.12 points, while the benchmark Shanghai Composite Index shed 0.18 percent to 3,356.84 points.

Investor risk appetite has been curbed by a mixed bag of recent China economic data showing signs of a slowdown in some areas of the economy, such as fixed-assets investment, but resilience elsewhere, such as stronger-than-expected lending.

There are emerging concerns over seasonal liquidity stress toward the end of the third quarter, due to the week-long National Day holiday and central bank health checks on commercial banks.

The mainland's stock market, dominated by retail investors, usually succumbs to outflows ahead of long holidays as investors pull money out for consumption.

A type of three-week interbank borrowing rate rose to over 4.9 percent on an average weighting on Tuesday morning, the highest in three months, as the holiday starting on October 1 approaches.

Most sectors lost ground, led by healthcare and infrastructure firms.

But real estate companies continued to outperform with a 1.70 percent gain.

China's real estate investment growth picked up pace again in August as demand held up despite various government curbs.

Posted in: MARKETS

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