You are here

China: Stocks reverse losses, but resource shares underperform

38129917 - 20_04_2016 - CHINA-STOCKS.jpg

[SHANGHAI] China stocks erased earlier losses in afternoon trading on Tuesday, as a rally in healthcare and real estate shares offset initial gloom triggered by falling commodity prices in the wake of a government crackdown on speculation.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.5 per cent, to 3,179.16, while the Shanghai Composite Index gained 0.6 per cent, to 2,964.70 points.

However, trading volume remained thin, while the SSEC closed below the 3,000 mark for the sixth consecutive day, offering fresh signs that the rebound since early March could have ended.

All main sectors rose; resource shares, which dragged the main indexes lower in the morning, were slightly firmer.

Investor interest in the sector was thin, as prices of many commodities futures contracts, including iron ore and rebar, fell on Tuesday in response to the regulatory crackdown on speculative trading.

REUTERS