China stocks closed lower on Thursday weighed down by a slump in top consumer shares, even as investors awaited developments around Sino-US trade talks. The blue-chip CSI300 index fell 0.5% to 3,873.10, while the Shanghai Composite Index lost 0.3% to 3,005.25. Consumer firms China International Travel Service Corp Ltd slumped 5.5%, while Guangdong Haid Group Co Ltd dived 6.4%. The CSI300 consumer staples index ended down 1.3%.
"There is a lack of safety margin in those leading consumer firms whose valuations have substantially gone up as Beijing encourages domestic consumption to bolster growth," said Yan Kaiwen, an analyst with China Fortune Securities. Caution remained as market participants kept an eye on the progress of Sino-US trade talks. Top representatives from the United States and China are arranging to resume talks next week to try to resolve a year-long trade war between the world's two largest economies, Trump administration officials said on Wednesday.
The largest percentage gainers in the main Shanghai Composite index were Solareast Holdings Co Ltd, up 10.1%, followed by Hualing Xingma Automobile Group Co Ltd, gaining 10.06% and Zhejiang Tuna Environmental Science & Technology Co Ltd, up by 10.02%. The largest percentage losers in the Shanghai index were Shandong Huifa Foodstuff Co Ltd down 10.04%, followed by Seazen Holdings Co Ltd losing 10% and TKD Science and Technology Co Ltd down by 9.83%. So far this year, the Shanghai stock index is up 20.5% and the CSI300 has risen 28.6%, while China's H-share index listed in Hong Kong is up 7.9%. Shanghai stocks have risen 0.89% this month.
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