SHANGHAI Jan 12 China's main indexes slid for
the third session as investors remained cautious ahead of the
Lunar New Year holidays and as small-cap companies settled at a
fresh 10-month low.
The blue-chip CSI300 index fell 0.5 percent to
3,317.62 points, while the Shanghai Composite Index lost
0.6 percent to 3,119.29 points.
If past experience is anything to go by, Chinese investors
tend to take a cautious approach as Lunar New Year nears given
the risk of liquidity stresses in the financial system.
Government officials say China's economy has been generally
stable at the start of the year, continuing the momentum from
second-half 2016, but also noting a challenging and complicated
trade outlook for 2017.
Shares of Metallurgical Corporation of China Ltd
jumped as much as 6.7 percent on news reports that it would
become the first firm to benefit from state-owned enterprises'
However, more state-owned stocks tied to reform hopes fell,
with bellwether China United Network Communications
closing 3.2 percent lower, dampening already weak sentiment.
Another concern for investors has been the valuations of
growth stocks, in particular as the securities regulator seemed
to accelerate the approvals of new IPOs.
The ChiNext Price Index, the benchmark index
tracking China's start-up companies, fell 0.4 percent in its
sixth straight session of losses.
Nearly all main sectors lost ground, led down by material
and industry shares.
(Reporting by Luoyan Liu and John Ruwitch; Editing by