SHANGHAI, June 6 China stocks ended higher on
Tuesday, with consumer and financial shares lending support as
investors pondered the impact of new regulations on initial
public offerings and ahead of a flurry of economic data.
The blue-chip CSI300 index rose 0.7 percent, to
3,492.88 points, while the Shanghai Composite Index
gained 0.3 percent to 3,102.13 points.
China's economy is likely to have remained on a stable
footing in May, buoyed by solid gains in trade and investment as
economic ties with the United States take a positive turn and
infrastructure spending cushions domestic growth.
A Reuters poll of indicators from trade and industrial
output to loans and property investment, is expected to show
that economic growth held up nicely into the second quarter,
defying worries of a sharp slowdown.
However, sentiment was dampened after state media reported
that the securities regulator would maintain a stable and firm
policy regarding new listings, raising concerns among investors
that the pace of IPOs would not be rolled back as expected.
"Currently, valuations of many listed companies are still
quite high, in particular small caps," said Zhang Qi, an analyst
with Haitong Securities.
Expectations of more equity supply could weigh on those
small-cap stocks, according to many analysts Reuters spoke to.
Most sectors gained ground, with consumer stocks
leading the gains.
(Reporting by Luoyan Liu and John Ruwitch; Editing by