SHANGHAI, March 23 China stocks ended slightly
higher on Thursday, despite a slump in Shanghai B shares amid
worries over tight liquidity and stepped-up regulation.
The blue-chip CSI300 index rose 0.4 percent, to
3,461.98 points, while the Shanghai Composite Index
added 0.1 percent, to 3,248.55 points.
The index tracking the dollar-dominated Shanghai B-shares
tumbled as much as 3.9 percent, before closing 1.7
percent lower, posting its worst day in two months. Shares
traded in Shanghai and Shenzhen exchanges in foreign currency
are B shares, while A shares are those denominated in yuan.
"The sharp drop in the Shanghai B-share market, is mainly
due to investors' concerns over tight liquidity in the country's
interbank market and stepped-up regulation on domestic financial
institutions," said Yang Weixiao, an analyst with Founder
Securities, adding the soured sentiment could spread to the
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.
In addition, the assessment will include off-balance sheet
wealth management products (WMPs) for the first time.
Earlier, investors found some solace after index compiler
MSCI said it was seeking feedback from market participants on
whether to add Chinese A-shares to its China Index and emerging
Sector performance were mixed.
Energy shares lagged, while banking
and property stocks firmed.
(Reporting by Luoyan Liu and John Ruwitch; Editing by