China: Stocks end up but bearish trend seen persisting

[SHANGHAI] China stocks edged up on Monday, but trading remained light, with the market's bearish trend seen persisting as the government holds off on further policy stimulus.

The blue-chip CSI300 index rose 0.3 per cent, to 3,087.22, while the Shanghai Composite Index gained 0.6 per cent, to 2,843.65 points.

The Shanghai index has fallen for five weeks in a row as investor enthusiasm waned on signs that China's nascent economic recovery is losing steam and as policymakers turn more cautious over stimulus as corporate bad debts soar.

"People would use any rebounds to sell stocks, as the market is in a bearish trend, both technically, and fundamentally,"said Yu Bin, analyst at Zhongtai Securities.

"Pessimism has replaced optimism as the government has put restructuring, instead of stimulus or growth, at the centre of its policy-making." But most stocks rebounded on Monday, with banking being the only main sector that ended the session in negative territory.

REUTERS