SHANGHAI, March 8 China stocks edged lower on
Wednesday, as small-caps pulled back amid lingering concerns
over tighter liquidity.
News that China unexpectedly posted a rare trade deficit in
February, as imports surged far more than expected, did not have
an impact on mainland exchanges.
The CSI300 index fell 0.1 percent, to 3,449.45
points at the close, while the Shanghai Composite Index
was barely changed at 3,241.18.
After an early-week rally led by technology shares,
investors started to focus on longer-term factors such as
liquidity situations and regional stability, while continuing to
digest news flows from the annual meeting of China's
China's leaders pledged at the meeting to contain the
financial risks from a rapid build-up in debt, and the central
bank has moved from a loose monetary stance to a tightening bias
to discourage speculative investments.
Hedge fund manager Zhang Kaihua said an anticipated U.S.
rate hike next week "may prod China to tighten liquidity and
increase money rates."
China's central bank drained a net 20 billion yuan from the
interbank market via open market operations on Wednesday amid
expectations of further tightening ahead.
Technology-heavy start-up board ChiNext dropped
0.7 percent, erasing some of the gains earlier this week, but
infrastructure and property shares
(Reporting by Jackie Cai and John Ruwitch; Editing by Richard