China shares end lower on profit-taking; tech, resources lead slide

SHANGHAI: China shares closed lower on Thursday, with tech and resources shares leading the declines, as some investors booked profits following the market's strong finish in the previous session.

The blue-chip CSI300 index ended down 0.5pc to 4,656.15 and the Shanghai Composite Index 0.2pc to 3,286.82.

Stocks were steady in morning trading, after the US Federal Reserve's pledge to limit damage from the pandemic lifted sentiment across global equity markets.

But signs of profit-taking gathered pace after the midday break, piling pressure on a market that jumped over 2pc on Wednesday due to bargain-hunting. The tech-heavy STAR Market, which surged 5.5pc on Wednesday, lost 0.3pc.

But healthcare stocks rose on reports that Chinese drug company Sinopharm and Parana state have agreed to launch the fourth major COVID-19 vaccine trial in Brazil and will seek regulatory approval in the next two weeks.

Meanwhile, in its latest strategy report, UBS China research team identified some sectors that could outperform the broader market despite deteriorating Sino-US relations.

They include premium beer makers, leading construction firms, infrastructure companies and Chinese players in Apple's supply chain.

Goldman Sachs estimates that China's newly-launched STAR 50 index - China's answer to Nasdaq 100 - could attract $11 billion in potential passive money inflows over the next five years.