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Shanghai stocks fall as economy, liquidity concerns resurface 



SHANGHAI: Shanghai stocks weakened on Thursday, dragged by industry and material shares, as worries resurfaced over a possible economic slowdown and tighter liquidity before year-end. 

The blue-chip CSI300 index was unchanged at 3,997.13 points, while the Shanghai Composite Index closed down 0.4 per cent to 3,383.31 points. 

The tech-heavy start-up board ChiNext dropped 1.3 per cent to a one-month low, having sunk 5.8 per cent this year. 


China's mutual funds continued to cut their holdings in start-ups in the third quarter, consistent with ChiNext's significant underperformance compared with large caps since 2016, Gao Ting, Head of China Strategy at UBS Securities wrote in a report. 

Low risk appetite, tight market liquidity, and ChiNext's slowing earnings growth are the main reasons behind this, Gao wrote. 

With China's generally upbeat third-quarter earnings in the rear-view mirror, investors are braced .. 




2/11/2017

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