SHANGHAI, Dec 6 (Reuters) - China stocks edged lower on Tuesday, as investors contemplated the possible repercussions on trade from scathing comments by a top securities regulator about “barbaric” takeovers.
The blue-chip CSI300 index fell 0.3 percent, to 3,459.15 points, while the Shanghai Composite Index lost 0.2 percent to 3,199.65 points.
On the second day of the Shenzhen-Hong Kong stock link, Shenzhen-listed shares continued to outperform, with Shenzhen benchmark index ending up 0.2 percent.
China’s industry-leading blue-chips witnessed a broad slump on Monday, posting its heaviest fall in six months, after top securities regulator condemned “barbaric” share acquisitions by some unidentified asset managers.
Piling up the pressure, the country’s insurance regulator said it has taken regulatory measures against Foresea Life, a unit of Chinese financial conglomerate Baoneng Group, and Evergrande Insurance, a unit of China Evergrande, including suspending some of their insurance businesses.
Chinese markets had been trending higher, bolstered by heated buying in modestly-valued big-caps, especially those favoured by heavyweight insurance players like Foresea Life, Anbang Group and Evergrande Insurance.
Most sectors lost ground, while gains were only seen in defensive consumer and healthcare sectors , perceived as prominent beneficiaries of the newly launched Shenzhen-Hong Kong stock connect.
Gree Electric Appliances rebounded 1.7 percent following the previous day’s 10 percent slump, after data showed overseas investors spent 372 million yuan buying the stock on Monday via the Shenzhen-Hong Kong Stock Connect as they hunted for bargains. (Reporting by Luoyan Liu and John Ruwitch; Editing by Shri Navaratnam)