SHANGHAI, March 30 China's main indexes capped
the fourth day in the red as lingering concerns over liquidity
were further heightened by curbs on property investment.
The blue-chip CSI300 index fell 0.9 percent, to
3,436.76 points, while the Shanghai Composite Index lost
1 percent to 3,210.24 points.
Smaller caps led the decline, with the tech-heavy start-up
board sliding 1.8 percent to a five-week low.
Zhang Qi, an analyst at Haitong Securities, said liquidity
worries kept investors sidelined.
China's central bank skipped open market operations for a
fifth day and was set to drain 40 billion yuan on Thursday.
The property market was another area of concern for
investors, as an increasing number of cities joined a broad move
by authorities to slap curbs on home purchases.
The National Academy of Economic Strategy, a government
think tank, urged authorities to guard against risks in the
property and financial sectors by properly managing monetary and
land supply "floodgates", adding to worries about more
restrictions on property developers.
Moody's Investors Service warned that the financial risks
facing China from a potential property downturn had grown as
record lending had made banks more risk-prone while the
government was less able to combat those risks.
An index tracking real estate developers fell
Zhang also noted that recent sharp losses in newly-listed
stocks, usually overpriced because of speculation, also
pressured the market.
The steep correction in newly-listed stocks, now in its
third session, has seen dozens of them tumbling by the maximum
allowed 10 percent.
Sectors were down across the board, led by material
and infrastructure stocks.
($1 = 6.8909 Chinese yuan renminbi)
(Reporting by Luoyan Liu and John Ruwitch; Editing by Shri