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China: Stocks close lower as regulatory clampdown knocks small caps
[SHANGHAI] China stocks closed lower on Friday as investors dumped small counters amid signs of a fresh regulatory clampdown on rampant speculation, which will hit excessively valued small caps.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.5 per cent, to 3,203.93, while the Shanghai Composite Index lost 0.5 per cent to 2,979.34 points.
For the week, the Shanghai Composite was down 1.1 per cent, and the CSI300 lost 0.7 per cent.
Among other moves, China is considering rules to restrict investments by small banks in the US$3.5 trillion wealth management product (WMP) industry, draft rules seen by Reuters earlier this week showed. That could curb their purchases of equities and other riskier assets.