SHANGHAI, March 27 China stocks slipped on
Monday, as any optimism felt from data showing surging profits
at industrial firms was offset by fresh property curbs and signs
that monetary policy may be further tightened.
The blue-chip CSI300 index fell 0.3 percent, to
3,478.04 points, while the Shanghai Composite Index shed
0.1 percent to 3,266.96 points.
Offering fresh signs of China's economic recovery, profits
of the country's industrial firms surged 31.5 percent in the
first two months of 2017 from a year earlier, as commodity
But the market may have already factored in solid profit
improvements, as company earnings have been firm, while fresh
measures to ward off asset price bubbles had some impact.
China introduced rules to curb the purchase of new
commercial property in Beijing by individuals in the
government's latest step to cool the property market, while the
central bank chose not to inject funds into the banking system
citing "relatively high levels of liquidity".
Ye Song, fund manager at Chang Xin Asset Management, wrote
in an annual fund report on Monday that the market will likely
be volatile in the near term as good news co-exists with bad
On the bright side, listed companies' profitability is
improving due to the economic recovery, and equities are a
better investment than bonds and property amid the government's
deleveraging campaign, he wrote.
On the darker side, "interest rates are climbing higher,
while the property curbs and deleveraging efforts cast doubt on
the sustainability of the recovery, suppressing equity
Most sectors lost ground, dragged lowered by consumer
and infrastructure stocks, as investors
took profits after a recent strong rally, while banks
and transport plays firmed.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Richard