China stocks fall, dragged by banks as data adds to economic uncertainty

martes 10 de marzo de 2015 00:47 GYT
 

* CSI300 -0.2 pct; SSEC -0.1 pct; His -0.5 pct

* Banks stocks fall on profit-taking after Monday's rally,

* ChiNext touches record highs, boosted by technology stocks

SHANGHAI, March 10 (Reuters) - China shares sagged on Tuesday morning as banking stocks stepped back after Monday's surge, while the mood was also soured by data showing increased factory sector deflation hurting pricing power of Chinese firms.

Tighter liquidity also contributed to the market weakness, analysts said, as investors start subscribing to new shares issued by Lens Technology Co Ltd on Tuesday, the first in a series of initial public offerings this week.

China's key banking subindex, which jumped nearly 6 percent on Monday on expectations that lenders would soon be awarded brokerage licenses, was down 1 percent by midday, dragging down main stock indexes.

"Even if banks get brokerage licenses, contribution to their profit would be negligible," said Zhang Chen, analyst at Shanghai-based hedge fund manager Hongyi Investment.

"For their rally to be sustainable, you need to see a big reduction in systematic?? risks. But we have not seen clear signs that the economy has bottomed out."

In contrast, Shenzhen's ChiNext, which tracks smaller high-growth high-tech tickers, was up nearly 2 percent, flirting with record highs.   Continuación...