SHANGHAI, June 16 China's stocks fell on Friday
to end the week lower as weak producer inflation and investment
data reinforced concerns of a renewed slowdown in the world's
The blue-chip CSI300 index fell 0.3 percent, to
3,518.76 points, while the Shanghai Composite Index also
lost 0.3 percent to 3,123.17 points.
For the week, CSI300 dropped 1.6 percent, while SSEC
contracted 1.1 percent.
The rally in blue-chips, which have far outperformed
small-caps this year, appear to be losing steam amid signs of
monetary tightening and renewed economic weakness.
The Shanghai SE 50 Index, an index tracking the 50
most representative blue-chips in Shanghai, slumped 2.6 percent,
posting its worst week in 2017.
Data this week showed that China's economy generally
remained on solid footing in May, but tighter monetary policy, a
cooling housing market and slowing investment reinforced views
that it will gradually lose momentum in coming months.
Yu Gang, analyst at Zhongtai Securities, said that upside
potential for mainland shares is limited, as liquidity remains
tight while borrowing costs rise.
In a sign that China's central bank intends to stabilise
market sentiment, the People's Bank of China (PBOC) injected a
net 410 billion yuan ($60.17 billion) into money markets this
week, the biggest weekly injection since mid-January.
For the week, banking and infrastructure stocks
dragged the most among main sectors, sliding 3.1
percent and 3.3 percent, respectively.
($1 = 6.8135 Chinese yuan)
(Reporting by Luoyan Liu and John Ruwitch; Editing by