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China shares follow regional peers lower, led by materials stocks
August 10, 2017 / 7:13 AM / 3 months ago

China shares follow regional peers lower, led by materials stocks

SHANGHAI, Aug 10 (Reuters) - China stocks ended lower as investors took a cue from weak regional and global markets, selling off shares in materials firms that had benefited from a recent rally.

The blue-chip CSI300 index fell 0.4 percent, to 3,715.92 points. The Shanghai Composite Index also also lost 0.4 percent, clsoing at 3,261.75 points.

China CSI300 stock index futures for August fell 0.5 percent, to 3,701, 14.95 points below the current value of the underlying index.

Analysts in China, unlike elsewhere, did not see tensions between North Korea and the United States as a cause for market jitters.

“The global correction is putting some pressure on shares, and some materials shares have risen sharply recently,” said Li Jian, an analyst at Great Wall Securities.

Shares in major materials firms fell sharply, with Aluminum Corp of China closing down 4.3 percent.

The company cautioned investors, in a filing to the Shanghai Stock Exchange Thursday, to be aware of market volatility and secondary market trading risks. It said expectations had changed and that rises in the price of electricity could increase costs.

The drop in Chalco shares came on the same day China aluminium prices reached five-year highs on expectations that capacity cuts may hurt supply.

Shares in steel and copper producers were also hit even as prices of those commodities remained strong. Chinese steel futures rose to near 4-1/2-year highs on Thursday, and Shanghai copper futures remained at levels last seen in 2013.

Jiangxi Copper Co Ltd closed down 4.3 percent, and Baoshan Iron & Steel Co Ltd fell 4.8 percent. (Reporting by Andrew Galbraith; Editing by Richard Borsuk)

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