China stocks extend week's slide to about 6 pct on economy worries
SHANGHAI, Sept 15 (Reuters) - China shares extended this week's losses to roughly 6 percent on Tuesday as investors worried about the slowing economy.
Stocks fell across the board for a second day even after China's securities regulator tried to soothe investors late on Monday by saying that an ongoing crackdown on illegal margin financing would not have significant impact on the market.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 3.9 percent, to 3,152.23, while the Shanghai Composite Index lost 3.6 percent, to 3,005.17 points.
On Monday, the main indexes shed 2.0 percent and 2.7 percent respectively.
Trading volume remained thin on Tuesday, with many investors on the sidelines amid concerns over the market's direction after a 40 percent crash over the summer prompted the government to launch a massive rescue package.
"With a slim chance of making a profit in this market, money is not coming in," said Zhou Lin, analyst at Huatai Securities.
Indeed, data showed heavy investor redemptions last month, with total net assets of Chinese stock funds slumping 44 percent to 724.8 billion yuan ($113.83 billion). Stocks fell about 12 percent in August.
Small-caps tumbled on Tuesday, with the CSI300 IT index slumping 7.5 percent, and Shenzhen's growth board ChiNext tanking 5.3 percent.
Banking shares, which rose late on Monday amid speculation of government intervention, also corrected, with a key index tracking the sector losing 0.9 percent.
Of all the stocks traded in Shanghai and Shenzhen, 2,151 declined, while only 234 gained. ($1 = 6.3674 Chinese yuan) (Reporting by Samuel Shen and Pete Sweeney; Editing by Richard Borsuk)
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