SHANGHAI, March 22 China stocks fell on
Wednesday due to worries over tightening liquidity in the
domestic banking system, and uncertainty over whether U.S.
President Donald Trump will be able to get his economic policies
approved in a timely fashion.
The blue-chip CSI300 index fell 0.5 percent, to
3,450.05 points, while the Shanghai Composite Index lost
0.5 percent to 3,245.22 points.
"Investors are taking a review of the global economic
recovery, as Trump fails to put forward specific figures on his
tax cut policies and infrastructure plans," said Linus Yip,
strategist at First Shanghai Securities Ltd.
On Tuesday, both the S&P 500 and the Dow Jones
Industrial Average booked their biggest one-day slide
since before Trump's election victory in November on concerns
over his capability to deliver promised corporate tax cuts.
Investors were also concerned about tightening liquidity in
the banking system as the end of the quarter nears, according to
Zhang Qi, an analyst at Haitong Securities.
Short-term interest rates in China surged on Tuesday as cash
conditions tightened on worries the central bank's quarterly
risk assessment at the end of this month would restrict lending
in the interbank market.
Main sectors fell across the board, led by banks
and property stocks, as a central bank survey found
that 52.2 percent of urban households believed housing prices
were "unacceptably high" in the first quarter.
That reinforced expectations authorities will be more
aggressive to cool a red-hot property market, even at the risk
of dampening economic growth..
Bucking the broad trend, stocks related to the "One Belt,
One Road" infrastructure initiative continued to outperform, led
by heavyweight infrastructure shares, as they were seen
benefiting from the initiative.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Randy