Weak banks threaten to break China stocks' 10-day streak; Hong Kong mixed

miércoles 25 de marzo de 2015 00:57 GYT
 

* CSI300 -1 pct; SSEC -1 pct; HSI +0.4 pct

* surge in new stock trading accounts sign fresh money inflows

* brokerages firm on record market trading volume

By Samuel Shen and Pete Sweeney

SHANGHAI, March 25 (Reuters) - Banking heavyweights dragged China's stock markets lower on Wednesday, threatening to snap their 10-day winning streaking win, and analysts warned of rising volatility as more people piled into the market betting on a further rally.

"The market is a bit crazy now. Even migrant workers are beginning to open stock accounts," Shen Zhengyang, Shanghai-based analyst at Northeast Securities said, referring to farmers who come to cities to work, often for low pay.

"Volatility would naturally increase," he said.

China's benchmark indexes have climbed some 55 percent since the central bank unexpectedly cut interest rates in November to support the slowing economy, and investors are betting that further policy easing this year will send more cash into the market.

Still, shares are looking a bit overbought on a technical basis after their latest run, leaving them vulnerable to profit taking.   Continuación...