SHANGHAI, June 2 China stocks ended the week
little changed on Friday, bucking a global equity rally as
investors worried about tightening liquidity and conflicting
signals on the health of the world's second-largest economy.
The blue-chip CSI300 index fell 0.3 percent to
3,486.51 points, while the Shanghai Composite Index
added 0.1 percent to 3,105.54.
For the week, the CSI300 inched up 0.2 percent, while the
SSEC slipped 0.1 percent.
Over the weekend, the securities regulator published rules
aimed at preventing major shareholders of listed companies from
reducing their holdings in an "intensive, massive and
disorderly" manner that "disturbed market order and dented
The new regulations were widely expected to help maintain
stability in the market dragged by expectations of more equity
However, some analysts saw limited help from that.
"Share sales restrictions don't address the fundamental
issues," said Su Peihai, analyst at brokerage Guangzheng Hang
Seng. "Sentiment is weak because investors worry about liquidity
and are pessimistic toward the economy."
The new policy is not a decisive factor that could determine
medium-range movements in the stock market, UBS strategist Gao
Sentiment was also hit by the Caixin manufacturing survey on
Thursday, which suggested activity contracted last month as
That contrasted with official business readings on Wednesday
which showed solid growth in factories and services, but
underlined investors' nervousness about the outlook for the rest
of the year.
Most market watchers expect China's economic growth to slow
gradually in coming months after a strong first quarter.
This month, the U.S. Federal Reserve is likely to raise
rates and Chinese banks face mid-year health checks from the
central bank, so "deleveraging and tighter liquidity" remain the
biggest concerns for investors, offsetting any short-term relief
from a strengthening yuan, Su said.
Echoing such fears, a Moody's survey published on Friday
suggests China's slowdown and higher corporate debt levels
represents the biggest risk to emerging market credit.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Kim