SHANGHAI, April 17 China's share markets fell on
Monday, as investors dumped stocks across the board after the
country's top securities regulator vowed to "brandish the sword"
and combat market misbehaviours.
The blue-chip CSI300 index fell 0.2 percent to
3,479.94 points, while the Shanghai Composite Index lost
0.7 percent to 3,222.17 points.
Main sectors fell broadly led by real estate
stocks, as bellwethers China Fortune Land and
Risesun Real Estate dived the maximum allowed 10
More than 100 stocks slumped by the 10 percent downside
limit, which has been rare in recent months.
Liu Shiyu, chairman of the China Securities Regulatory
Commission (CSRC), over the weekend urged stock exchanges "to
resolutely combat behaviour that disturbs market order and in no
way be lenient".
"Liu's harsh words extinguished interest in 'concept'
stocks," said Chang Chengwei, analyst at Hengtai Futures Co.
Chang, who brushed aside North Korea tensions as a factor
affecting China shares, also attributed bearish sentiment to
worries about renewed economic slowdown as the cycle of "stock
replenishing" by companies comes to an end.
Underscoring the impact of a tighter regulatory environment,
shares of listed companies expected to benefit from China's
planned Xiongan special economic zone plunged on Monday
following their recent surge, with around 15 stocks tumbling by
their 10 percent daily limit.
The market is also hurt by growing worries that China's
economic recovery, and thus the "reflation trade", is ending,
despite data showing the economy grew 6.9 percent in the first
quarter, better than expected and the highest since
Small-caps, in particular newly-listed stocks and those
"fallen prey to market manipulation", continued to slump as
investors retreated amid worries over increased regulation.
"Risk appetite (is) still muted; we remain constructive on
large-cap blue chips," UBS said in its latest strategy report.
(Reporting by Luoyan Liu and John Ruwitch; Editing by