SHANGHAI May 4 China stocks extended losses on
Thursday to close at three-month lows, after a survey showing
softer services sector activity raised concerns over growing
The blue-chip CSI300 index fell 0.3 percent, to
3,404.39 points, while the Shanghai Composite Index also
closed down 0.3 percent at 3,127.37 points.
Growth in China's services sector cooled to its slowest in
almost a year in April as fears of slower economic growth dented
business confidence, even as cost pressures eased, a private
survey showed on Thursday.
The findings echoed a similar trend of slowing growth seen
in China's official factory and services surveys on Sunday.
"A turning point in growth appeared to have emerged at the
beginning of the second quarter. Investors should be cautious
about downward risks in the economy," Zhengsheng Zhong, Director
of Macroeconomic Analysis at CEBM Group said in a note.
Further curbing sentiment, the securities regulator on
Wednesday vowed to step up efforts to prevent and control
financial risks ahead of a key Party Congress later this year.
Participants had already been rattled by tougher regulations
recently to dampen market speculation, but Liu Qihao, an analyst
with Shanghai Securities, said chances for a major downturn in
the main indexes were low.
Most sectors lost ground, led by material and
energy stocks, dragged down by an across-the-board
sell-off in the commodities market.
Bank stocks continued to weigh on the market, with an index
tracking the nation's major lenders closing at a
near nine-month low.
(Reporting by Luoyan Liu and John Ruwitch; Editing by