SHANGHAI, Dec 29 (Reuters) - China stocks were little changed on Thursday, with optimism spurred by fading liquidity stress but investors kept wary by the prospect of regulatory measures to curb aggressive investment in stocks by insurers.
The blue-chip CSI300 index dipped 0.1 percent, to 3,297.76, while the Shanghai Composite Index lost 0.2 percent to 3,096.10 points.
The market found some solace from progress made to avoid defaults resulting from a recent bond scandal. Sealand Securities said on Thursday it had signed agreements with 19 counterparties to resolve the "forged" bond dispute.
But investors stayed cautious following news that the insurance regulator planned to establish a discriminatory supervision system that would keep a closer watch on some unconventional insurance products, in the latest move to rein in aggressive stock investment.
Sector performance was mixed on the mainland, with gains in infrastructure stocks offsetting losses in property stocks. (Reporting by Jackie Cai and John Ruwitch; Editing by Simon Cameron-Moore)