China stocks tumble on profit-taking ahead of G20 meeting; HK also down

jueves 25 de febrero de 2016 00:23 GYT

* CSI300 -3.4 pct; SSEC -3.6 pct; His -1.2 pct

* Small-caps lead China falls with ChiNext down nearly 6 pct

* Hong Kong's energy and resources shares pull back

SHANGHAI, Feb 25 (Reuters) - China stocks fell more than 3 percent on Thursday, led by small-caps, as investors took profits from a solid rebound over the past month and awaited policy messages from Chinese and other global leaders gathering in Shanghai for a G20 meeting.

The blue-chip CSI300 index tumbled 3.4 percent to 3,005.23 points by lunch time, while the Shanghai Composite Index lost 3.6 percent to 2,823.06.

The bearish sentiment spilt over into Hong Kong, where the benchmark Hang Seng index dropped 1.2 percent and the Hong Kong China Enterprises Index was off 1.7 percent.

China stocks have rebounded roughly 10 percent from 14-month lows hit in late January, fuelled by a global market recovery, central bank efforts to stabilise the yuan and hopes that Beijing will unveil more stimulus for the slowing economy.

It also follows a typically bullish pattern ahead of an annual meeting of China's top legislature, which starts on March 5 this year, but traders say the thematic rebound could end earlier this time.

"Market confidence is still fragile and economic prospects remain gloomy, so investors could be taking profit earlier than in previous years," said Wu Kan, head of equities trading at Shanghai-based investment firm Shanshan Finance.   Continuación...