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China stocks drift as tight liquidity offsets gains for state firms
December 22, 2016 / 7:12 AM / a year ago

China stocks drift as tight liquidity offsets gains for state firms

SHANGHAI, Dec 22 (Reuters) - China’s main stock indexes barely moved on Thursday, as strength in shares of state-owned enterprises (SOE) was offset by persisting tight liquidity in the wake of a bond scandal.

The CSI300 index, which rose nearly 1 percent on Wednesday, fell 0.1 percent, to 3,335.81 points, while the Shanghai Composite Index lost 0.1 percent, to 3,140.15 points.

After problems with forged bonds emerged, China’s central bank has asked its branches to look into entrusted bond holding agreements between some commercial banks and non-financial firms.

Reuters reported on Thursday that China’s insurance regulator was making it much harder for insurers to get new licences, in the latest move to rein in some insurers’ aggressive stock investments that have raised concerns.

The Shanghai SOEs Index was up more than 0.6 percent at the close, bucking a broad downward trend.

Shares of index heavyweight PetroChina Co Ltd climbed to a nearly one-year intraday high on restructuring hopes. (Reporting by Jackie Cai and John Ruwitch; Editing by Richard Borsuk)

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