China stocks slip as regulatory clampdown knocks small caps, HK also lower

viernes 29 de julio de 2016 00:31 GYT

* CSI300 -0.1 pct, SSEC -0.1 pct

* His -0.8 pct, HSCE -0.7 pct

SHANGHAI, July 29 (Reuters) - Chinese stocks slipped on Friday as investors dumped small cap stocks amid signs of a fresh regulatory clampdown on rampant speculation.

The CSI300 index fell 0.1 percent to 3,217.78 points at the end of the morning session, while the Shanghai Composite Index lost 0.1 percent to 2,992.32.

China CSI300 stock index futures for August were flat at 3,193.6, 24.18 points below the current value of the underlying index and suggesting investors are expecting further losses.

Among other moves, China is considering rules to restrict investments by small banks in the $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.

"Recent regulatory moves to clean the market will first and foremost hit excessively valued small caps," said Xiao Shijun, analyst at Guodu Securities in Beijing.

"However, stability in blue-chips helped offset the negative impact of sales in small counters this morning. The trend is likely to continue next week, keeping the indexes in tight ranges."

Small-cap Xinjiang Xuefeng Sci-Tech (Group) Co Ltd was the morning's biggest faller in Shanghai, tumbling 7.6 percent after forecasting net profit would decrease 84.4 percent in the first half of this year from the same period a year earlier.   Continuación...