SHANGHAI, April 25 China stocks steadied on
Tuesday following a sharp sell-off the previous session.
Persistent weakness in small-caps offset gains in defensive
stocks, showing investors were growing cautious over tougher
The blue-chip CSI300 index rose 0.3 percent, to
3,440.97 points, while the Shanghai Composite Index
gained 0.2 percent to 3,134.57 points.
Yang Hai, strategist at Kaiyuan Securities, described the
rebound, which came after the market's over 1 percent drop on
Monday - the biggest percentage loss for the year - as
"technical" in nature.
"The market bounced after being over-sold," Yang said,
attributing the recent weakness to regulatory tightening.
"The regulatory crackdown on shadow banking is targeting
mainly the banking system, not the stock market, but equities
have been implicated."
Analysts also cited the securities regulator's crackdown,
which has driven money into cash-rich blue-chips.
The official Xinhua News Agency said late on Monday that the
new draft of China's securities law would tighten rules
preventing insider trading and better protect investors.
Stocks expected to benefit from the Xiongan New Economic
Zone rose sharply but gave back much of their gains in the
afternoon, as investors again showed wariness over the stricter
Sector performance was mixed, with consumer stocks
outperforming the broader market with a 3 percent
rise, as investors sought defensive plays amid bearish trends
elsewhere in the market.
Hangzhou Hikvision Digital Technology rose 4.2
percent to a record high as investors chase industry-leading
companies with steady growth.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Simon