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Markets Print edition: 2021-06-16

China stocks down

Published June 16, 2021 Updated June 16, 2021 03:39am
By

SHANGHAI: China stocks ended lower on Tuesday, as tensions between Beijing and the West soured investor sentiment after G7 leaders took the Asian nation to task over a range of issues, which China called a gross interference in the country's internal affairs.

The blue-chip CSI300 index ended 1.1% lower at 5,166.56, while the Shanghai Composite Index slipped 0.9% to 3,556.56.

Shares in China's Belt and Road-related companies dropped, after the G7 leaders sought to counter China's growing influence by offering developing nations an infrastructure plan that could rival President Xi Jinping's multi-trillion-dollar Belt and Road initiative.

Among the worst performing sectors, the CSI300 Real Estate Index and the CSI A-share resource industries slumped 2.5% and 2.6%, respectively.

Shares of developers retreated after state media warned speculators that China's housing prices would inevitably enter a cycle of slow growth.

Money inflows from institutional investors had been limited in the past weeks, while foreign inflows via the Stock Connect slowed, CITIC Securities noted in a report.

Investors via the Stock Connect linking mainland and Hong Kong sold a net 2.5 billion yuan ($390.52 million) worth of A-shares on Tuesday, according to Refinitiv data.

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