- The CSI300 index fell 0.7% to 5,128.01 points at the end of the morning session, while the Shanghai Composite Index dipped 0.3% to 3,473.32.
- Falling the most on Tuesday, the CSI300 healthcare index and CSI300 consumer discretionary index dropped 1.8% and 1.9%, respectively.
SHANGHAI: China stocks retreated on Tuesday, pressured by healthcare and consumer companies, as solid economic data raised worries of policy tightening.
The CSI300 index fell 0.7% to 5,128.01 points at the end of the morning session, while the Shanghai Composite Index dipped 0.3% to 3,473.32.
As of last close, the CSI300 had rebounded nearly 6% from a recent trough hit on March 25, while SSEC had gained more than 4% in the same period.
Falling the most on Tuesday, the CSI300 healthcare index and CSI300 consumer discretionary index dropped 1.8% and 1.9%, respectively.
Recent economic data has been robust, but analysts warn that it could lead to concerns of inflation and policy tightening.
A recovery in China's services sector picked up speed in March as firms hired more workers and business optimism surged, although inflationary pressures remained, a private sector survey showed.
The Caixin/Markit services Purchasing Managers' Index (PMI) rose to 54.3, the highest since December, and well above the 50-mark that separates growth from contraction on a monthly basis.
If China's inflation and GDP growth data, due later this month, far beat expectations, policy tightening worries will be kindled, Huaan Securities said in a report.
Analysts said short-term sentiment was weighed by foreign investors becoming net sellers via the Stock Connect last week and as the issuance of new mutual funds slowed substantially.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.28%, while Japan's Nikkei index fell 1.08%.
The yuan was quoted at 6.5554 per US dollar, 0.18% firmer than the previous close of 6.5675.
As of 0345 GMT, China's A-shares were trading at a premium of 32.87% over the Hong Kong-listed H-shares.