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China shares flat on fears of tighter credit

China shares flat on fears of tighter credit

Chinese shares ended flat Tuesday on fears for possible more credit-tightening policies for real estate.
The benchmark Shanghai Composite Index edged up 0.72 points, or 0.02 percent, to close at 3,158.68. The Shenzhen Composite Index for China's smaller second exchange added 0.2 percent to 1,237.43.
Investors were optimistic about corporate earnings but uneasy about possible tightening of credit following government pledges to cool surging real estate prices.
"The fall of heavyweight property shares weighed in the benchmark, as investors were worried a recovery of housing prices might lead to another round of tough measures from the government," said Peng Yunliang, a strategist for Shanghai Securities.
Poly Real Estate Group, China's second-biggest developer, lost 3.67 percent to 20.67 yuan, while rival China Vanke Ltd. dropped 1.7 percent to 9.6 yuan.
Resource and metal shares, industries closely linked to the business cycle, climbed on hopes of more demand as the economy recovers.
China Shenhua Energy Co., the country's largest coal producer, jumped 1.1 percent to 29.85 yuan. Tongling Nonferrous Metals Group Co. rose 2.3 percent to 20.49 yuan, while Jiangxi Copper Ltd., China's biggest metal producers, gained percent to yuan.
Banks finished mixed with Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, off 0.2 percent to 5 yuan and Bank of China Ltd. up 0.2 percent to 4.3 yuan.
In currency markets, the yuan strengthened to 6.8257 to the U.S. dollar, up from Friday's close of 6.8260.
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Associated Press researcher Bonnie Cao contributed to this report.


Updated : 2021-05-19 11:48 GMT+08:00