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China: Stocks close down sharply, break below sentiment support level

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[SHANGHAI] China stocks closed down on Wednesday, with futures trade appearing to show what analysts originally saw as a profit-taking blip earlier in the week - support for mainland stocks may be losing traction.

China CSI300 stock index futures for January fell 3.3 per cent, to 3,259.2, still 29.4 points above the current value of the underlying index but down nearly 7 per cent over the last three trading days. Other futures contracts also declined.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 2.8 per cent, to 3,230.39, while the Shanghai Composite Index lost 1.9 per cent, to 2,972.53 points, dropping below 3,000 - considered a sentiment support level - for the first time since Dec. 17.

Among the most active stocks in Shanghai were GD Power , up 0.9 per cent to 4.53 yuan; Bank Of China , down 4.0 per cent to 3.57 yuan and Minsheng Bank , down 1.8 per cent to 10.31 yuan.

In Shenzhen, TCL Corp, down 3.8 per cent to 3.82 yuan; BOE Technology, down 3.3 per cent to 3.23 yuan and Changjiang Securities, down 9.0 per cent to 14.86 yuan were among the most actively traded.

Total volume of A shares traded in Shanghai was 37.6 billion shares, while Shenzhen volume was 15.4 billion shares.

REUTERS