SHANGHAI: China stocks broke a three-day winning streak and ended lower on Tuesday, weighed down by healthcare and consumer stocks, as investors pondered over the impact of a government reshuffle.
At the close, the Shanghai Composite index was down 0.5 percent at 3,310.24, while the blue-chip CSI300 index was down 0.9 percent at 4,091.25.
China is merging its banking and insurance regulators and giving new powers to policymaking bodies such as the central bank in the biggest government shake-up in years. The revamp is a cornerstone of President Xi Jinping’s agenda to put the leadership of the ruling Communist Party squarely at the heart of policy with Xi himself at the core of the party.
The merger of two key financial regulators in itself should not be very significant, but it is a precursor for the establishment of a more powerful Financial Stability and Development Commission (FSDC) housed within the People’s Bank of China (PBOC), Jonas Short, analyst with Everbright Sun Hung Kai, wrote in note.
Financial sector was down 0.8 percent on Tuesday, with banking sector basically flat, while most insurers led the decline.
The largest percentage gainers in the main Shanghai Composite index were Dr.Peng Telecom & Media Group Co Ltd, up 10.02 percent, followed by Yangzhou Yaxing Motor Coach Co Ltd , up 10.02 percent, and Guizhou Guihang Automotive Components Co Ltd, up 9.98 percent.
The largest percentage losses in the Shanghai index were Shanghai Fukong Interactive Entertainment Co Ltd, down 10.01 percent, Changshu Fengfan Power Equipment Co Ltd , down 9.95 percent and Pci-Suntek Technology Co Ltd , down 9.75 percent.
Around 17.71 billion shares were traded on the Shanghai exchange, roughly 91.3 percent of the market’s 30-day moving average of 19.40 billion shares a day.
The volume in the previous trading session was 20.65 billion.
As of 07:06 GMT, China’s A-shares were trading at a premium of 24.87 percent over the Hong Kong-listed H-shares.
The Shanghai stock index is below its 50-day moving average and above its 200-day moving average.
The price-to-earnings ratio of the Shanghai index was 15.1 as of the last full trading day while the dividend yield was 1.9 percent.
So far this week, the market capitalisation of the Shanghai stock index has risen by 0.51 percent to 29.66 trillion yuan.
Source: Brecorder.com
