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China: Stocks fall as economic worries weigh

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[SHANGHAI] China stocks fell on Thursday as investors turned their focus back to the struggling economy after a brief bargain hunting spree in the previous session.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.7 per cent, to 3,094.67, while the Shanghai Composite Index lost 0.5 per cent, to 2,872.82 points.

UBS strategist Lu Wenjie said fears of further weakness in the yuan were also discouraging investors.

On Wednesday, the yuan briefly hit a more than five-year low against the dollar as the greenback firmed amid growing fears that Britain may vote to leave the European Union in the June 23 referendum.

Most sectors, including infrastructure and financials fell.

Bucking the trend, resources shares rose on news that China will strictly control newly added production capacity, and accelerate a reduction of overcapacity in the non-ferrous metals sector.

REUTERS

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