SHANGHAI: China stocks ended flat on Thursday, with gains led by consumer and healthcare firms, while small-caps, particularly newly-listed shares, were dumped after regulators warned of risks and bubbles.
At the close, the Shanghai Composite index was flat at 3,291.11, while the blue-chip CSI300 index gained 0.6 percent to 4,096.16.
Trading was thin as investors remained cautious amid mounting investor concerns that growing trade tensions would hurt the global economy.
An index tracking newly-listed firms in Shenzhen slumped 3.3 percent, posting its worst day since early February.
After slapping a record fine on a local company for share price manipulation, China's securities regulator issued stern warnings against speculation in newly-listed stocks, saying such speculative activities could accumulate risks and bubbles.
China's financial watchdogs are pushing for harsher rules and stepping up action against miscreants, spurred on by official pressure on them to curb risk in the financial system, according to multiple sources with direct knowledge of the situation.
Officials at the central bank, as well as at the banking, insurance and securities regulators, have been stepping up their enforcement activities, which have been under increased scrutiny since late last year, the sources told Reuters.
The largest percentage gainers in the main Shanghai Composite index were SDIC Zhonglu Fruit Juice Co Ltd, up 10.05 percent, followed by Luoyang Glass Co Ltd gaining 10.03 percent and Xinjiang Bai Hua Cun Co Ltd up by 10 percent.
The largest percentage losers in the Shanghai index were Shanghai Fukong Interactive Entertainment Co Ltd down 10.03 percent, followed by Tederic Machinery Co Ltd losing 6.79 percent and Changshu Fengfan Power Equipment Co Ltd down by 5.39 percent.
As of 07:06 GMT, China's A-shares were trading at a premium of 24.60 percent over the Hong Kong-listed H-shares.
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