China shares dip as strong trade data fuels tightening concerns

SHANGHAI: China stocks ended lower on Tuesday, extending losses into a third day on weakness in financials and consumer discretionary shares, as robust trade data added to investor concerns that authorities could begin to tighten policy.

At the close, the Shanghai Composite index was down 0.48% at 3,396.47, its third day of losses.

The blue-chip CSI300 index ended down 0.16%, turning lower from midday gains.

The financial sector sub-index fell 0.44%, the real estate index dipped 0.89% and the consumer discretionary sector slumped 2.45%.

China's exports grew strongly in March on improving global demand as COVID-19 vaccinations progress, and import growth hit a four-year high, adding to signs of a solidifying recovery in the world's second-largest economy.

Investor concerns that a recovering economy could prompt policy tightening have been a consistent drag on A-shares in recent weeks, despite officials emphasising policy continuity.

China should avoid credit contraction and keep inflation expectations from intensifying, the 21st Century Business Herald quoted central bank policy adviser Wang Yiming as saying on Tuesday.

Wang's words followed comments from Sun Guofeng, head of the monetary policy department at the People's Bank of China, who said Monday that China will maintain continuity, stability and sustainability of its economic policies.

The smaller Shenzhen index ended down 0.17% and the start-up board ChiNext Composite index was higher by 0.842%.

Around the region, MSCI's Asia ex-Japan stock index was barely changed, while Japan's Nikkei index closed up 0.72%.

At 0707 GMT, the yuan was quoted at 6.5505 per U.S. dollar, 0.05% weaker than the previous close of 6.5475. - Reuters

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CSI300 , Shanghai Composite index


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