China stocks dip as investors take profit amid economic worry

miércoles 1 de junio de 2016 03:11 GYT
 

SHANGHAI, June 1 (Reuters) - China stocks dipped on Wednesday following the previous day's sharp rally, as growing optimism about MSCI adding mainland stocks to its emerging markets index was offset by worries over China's economy and a looming U.S. rate hike.

The blue-chip CSI300 index fell 0.3 percent, to 3,160.55, while the Shanghai Composite Index dipped 0.1 percent, to 2,913.51 points.

There was little market reaction to the official and private surveys on China's manufacturing activity, which were roughly in line with expectations, underlining doubts that the world's second-largest economy is picking up.

Some investors took profit from Tuesday's more than 3 percent surge in China's shares, which was underpinned by expectations that U.S. market index provider MSCI could add mainland stocks to its emerging market benchmark for the first time.

David Dai, Shanghai-based investor director at Nanhai Fund Management Co, said any market rally was unlikely to be sustained.

"The economy is still weak, and the Fed will likely raise rates soon. I don't think the market will go up much further. The best strategy now is to take profit."

Financial firms dropped following Tuesday's jump, offsetting gains in the material and energy sectors. (Reporting by Samuel Shen and Nathaniel Taplin; Editing by Jacqueline Wong)