China stocks fall on profit-taking after property policies eased
SHANGHAI, March 31 (Reuters) - China stocks shed early gains and fell on Tuesday, snapping a three-day winning streak as some investors who front-ran Beijing's property easing policies dumped shares to lock in profit.
The CSI300 index, which surged 1.9 percent in morning trading, ended the day down 0.9 percent, while the Shanghai Composite Index also surrendered early gains, dropping 1.0 percent.
For the month, both indexes were up more than 13 percent.
For the first quarter, the CSI300 was up 14.6 percent and the SSEC by 15.9 percent.
Analysts said China's policies to support the real estate market had been expected by the market - evidenced by a surge in real estate stocks on Monday - so the actual announcement prodded some to take profit.
In a note Tuesday morning, Zhang Gang, analyst at Southwestern Securities, warned clients of the risk of profit-taking, adding that he was not optimistic about the effectiveness of the easing measures.
Real estate shares, which surged over 7 percent on Monday on expectation of policy support measures, fell 2.3 percent on Tuesday.
Banking shares also surrendered gains seen in morning trade.
Among the most active stocks in Shanghai were China State Construction, down 3.3 percent to 7.68 yuan; Bank of China, down 1.6 percent to 4.39 yuan and Agricultural Bank of China, down 1.9 percent to 3.67 yuan.
In Shenzhen, Vanke, down 3.0 percent to 13.82 yuan; Zoomlion, down 3.2 percent to 7.32 yuan and BOE Technology, down 1.7 percent to 4.03 yuan were among the most actively traded.
Total volume of A shares traded in Shanghai was 56.0 billion shares, while Shenzhen volume was 31.7 billion shares. (Reporting by Samuel Shen and Pete Sweeney; Editing by Richard Borsuk)
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