China: Stocks open mixed after sharp correction last week

[SHANGHAI] China stocks opened narrowly mixed on Tuesday after the market resumed trading after a three-day holiday, with futures markets showing traders see more rough weather ahead.

Last week, China's stock market slumped more than 13 per cent, their worst showing since the global financial crisis in 2008.

Analysts said liquidity concerns were at the forefront of the correction, triggered by tightening of margin financing, a series of IPOs that locked up funds in escrow, and generally tight money conditions in the run-up to the end of the first half.

The CSI300 index rose 0.2 per cent to 4,644.19 points, while the Shanghai Composite Index lost 0.2 per cent to 4,467.50 points.

China CSI300 stock index futures for July fell 1.1 per cent, to 4,662.2, 18.01 points above the current value of the underlying index.

REUTERS