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China: Stocks pulled down by property, health checks on banks

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[SHANGHAI] China shares dipped on Wednesday, with property shares falling sharply as investors took profits from six days of gains.

Financial shares also were under pressure after regulators reportedly launched a nationwide health-check on the banking industry, offsetting strength in resources and materials stocks.

The blue-chip CSI300 Index fell 0.4 per cent to 3,243.34 points, while the Shanghai Composite Index lost 0.2 per cent to 3,018.75 points.

The checks by China's banking regulator will cover a wide range of business areas including deposits, lending, bills and wealth management, the National Business Daily reported on Wednesday.

Separately, Caixin reported that China's securities regulator has urged securities firms, fund houses and futures brokerages to conduct self-inspections on their wealth management businesses.

The property sector dropped 2 per cent. Bellwether Vanke, the Chinese developer at the heart of a bidding war, fell 3.5 per cent.

But coal and steel stocks surged on higher prices of the materials, amid hopes that Beijing will step up efforts to reduce overcapacity in those sectors in the second half of the year.