Weak banks break China stocks' 10-day winning streak

miércoles 25 de marzo de 2015 03:15 GYT
 

SHANGHAI, March 25 (Reuters) - China stocks snapped a 10-day winning streak on Wednesday as banks dragged major indexes lower after Agricultural Bank of China (AgBank) reported a drop in profit and a spike in bad loans as the economy slows.

Profit-taking also contributed to the fall, while analysts warned of rising volatility ahead as more people piled into the market betting on a further rally.

The banking index declined 2.8 percent after AgBank late on Tuesday kicked off earnings reports from the country's "Big Four" banks this week. Its fourth-quarter net profit was below expectations while bad loans hit a three-year high.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.8 percent, to 3,940.41, while the Shanghai Composite Index lost 0.8 percent, to 3,660.73 points.

But small-cap stocks remained strong, with the Nasdaq-style board ChiNext rising 1.7 percent to close at a record high despite lofty valuations.

Among the most active stocks in Shanghai were AgBank , down 2.1 percent to 3.65 yuan; Zijin Mining , up 3.0 percent to 4.53 yuan and Bank Of China , down 2.9 percent to 4.31 yuan.

In Shenzhen, BOE Technology, down 2.6 percent to 4.13 yuan; TCL Corp, up 1.5 percent to 5.99 yuan and Myhome Real Estate Development Group, up 4.0 percent to 5.00 yuan were among the most actively traded.

Total volume of A shares traded in Shanghai was 52.1 billion shares, while Shenzhen volume was 33.3 billion shares. (Reporting by Samuel Shen and Pete Sweeney; Editing by Kim Coghill)