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China: Stocks end flat despite gains in most Asian markets

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[SHANGHAI] China stocks were roughly flat on Tuesday, bucking gains in Hong Kong and other Asian markets which were supported by diminishing expectations of near-term U.S. interest rate hikes.

The blue-chip CSI300 index fell 0.1 per cent, to 3,177.05, while the Shanghai Composite Index gained 0.1 per cent, to 2,936.04 points.

Wang Yi, strategist at Great Wall Securities, expected China's market to pick up eventually as the fears of an imminent US rate hike recede and on hopes that Beijing will accelerate its long-promised reforms for bloated and inefficient state enterprises.

Investors also hope MSCI will decide next week to add some China "A" shares to its emerging market index.

Most sectors lost ground, with IT and materials among the biggest decliners.

FAW Car and FAW Xiali, both controlled by state-owned FAW Group, slumped for their second day, after the two automakers said they would postpone a restructuring plan aimed at eliminating conflicts of interests within the group. FAW Car slid 3.9 per cent and FAW Xiali nearly 5 per cent.

REUTERS