SHANGHAI: China stocks fell on Tuesday, tracking regional markets lower, as worries over the country’s deepening property crisis and soft domestic demand offset signs of improvement in factory output.

China stocks close up on strong activity data

Caution ahead of a flurry of global central bank meetings this week also kept trading subdued, with the US Federal Reserve reviewing policy midweek amid further signs it may not cut interest rates as quickly or as much as expected just a few months ago, which would keep pressure on China’s yuan.

• The broad Asian stock market fell amid the cautious mood. Japanese shares were volatile after the Bank of Japan in a widely expected move ended eight years of negative interest rates and ushered in the nation’s first policy tightening since 2007. Other Asian stocks fell.

• Data on Monday showed China’s factory output and retail sales beat expectations in the January-February period, but weakness in the property sector remains a heavy drag on the economy and confidence.

• “China’s organic economic growth is likely to be flat to mildly positive in the coming months,” said analysts at Gavekal Dragonomics. “But the latest data will not persuade market participants that policymakers have decisively shifted towards growth.”

• Shares in healthcare, communications lost more than 1% each to lead the decline, while consumer staples and energy both added more than 1%.

• Real estate developers slipped 0.4% even after the Chinese megacity Beijing said it would optimise property regulation and implement different policies based on each districts’ situation.

• Tech giants listed in Hong Kong slumped 1.8%.