SHANGHAI May 5 China's main stock indexes fell
on Friday to fresh three-month lows, posting their fourth weekly
loss in a row, as lingering worries over economic growth and
tighter regulations hurt risk appetite.
The blue-chip CSI300 index fell 0.6 percent, to
3,382.55 points, while the Shanghai Composite Index
dropped 0.8 percent to 3,103.04 points.
For the week, CSI300 was down 1.7 percent in its worst week
this year, while the SSEC lost 1.6 percent.
"Obviously regulations are tightening and a large number of
regulatory measures will come in the second half of the year,
thus hurting sentiment," said Zhu Qibing, an analyst with BOCI
Manufacturing surveys out of China this week triggered
worries the world's second largest economy may have peaked in
the first quarter and could be starting to embrace a downward
trend in the near term.
After years of super-loose policy, Beijing pledged to shift
the emphasis to addressing financial risks and asset bubbles,
and regulators have stepped up a crackdown on riskier forms of
financing as authorities try to contain financial risks from
years of debt-fuelled stimulus.
China's central bank injected 506.39 billion yuan ($73.44
billion) into the financial system in April, down 18 percent
from the previous month, signalling a bid to rein in rapid
Financials took the biggest hit from the tightening, with an
index tracking those stocks slumping 2.5 percent to
a near nine-month low, notching its worst week year-to-date.
For the past week, resources shares were hard hit by sharp
falls in oil and commodities prices, amid worries over slowing
construction and infrastructure demand.
Sectors fell across the board on Friday, led by energy
, financial and material stocks
Despite the recent sharp correction, most analysts Reuters
talked to saw little chances for a major downturn in the main
stock indexes, given Beijing's intention to maintain financial
stability and potentially peaking yet still solid economic
($1 = 6.8955 Chinese yuan)
(Reporting by Luoyan Liu and John Ruwitch; Editing by Sam