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China shares flat despite Wall Street gains

China shares flat despite Wall Street gains

Chinese shares ended flat Friday despite big Wall Street gains after Beijing expressed confidence in euro debt, finishing the week up by 2.8 percent.
The benchmark Shanghai Composite Index slipped 0.15 points, or 0.01 percent, to close at 2,655.77, but the Shenzhen Composite Index for China's smaller second exchange edged up 0.2 percent to 1,062.78.
While overseas markets gained on Beijing's expression of confidence in Europe as a place to invest its foreign reserves, the rise triggered fears it might prompt China to tighten credit, analysts said.
"Recovery of the world market might not be good for China, because the government will simply go ahead with their tightening with no worries of hurting the economy," said Cao Xuefeng, an analyst for Huaxi Securities in the western city of Chengdu.
Real estate developers retreated on news report that Shanghai might soon impose a trial of a property tax. Poly Real Estate Group shed 2.5 percent to 11.44 yuan, while rival China Vanke Ltd., the country's biggest developer, dropped 1.3 percent to 7.43 yuan.
Metal shares rose on reports that the government will create a strategic reserve for rare earths. Minmetals Development Co. gained 3.1 percent to 16.17 yuan, while Aluminum Corp. of China. added 1 percent to 10.65 yuan.
Mounting expectations of higher inflation helped to boost liquor producers, seen as an inflation-proof industry. Jiugui Liquor Co. soared by the daily 10 percent maximum to 12.05 yuan, while Anhui Gujing Distillery Co. jumped 2.7 percent to 23.55 yuan.
In currency markets, the yuan strengthened to 6.8312 to the U.S. dollar, up from Thursday's close of 6.8316.
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Associated Press researcher Bonnie Cao contributed to this report.


Updated : 2021-07-28 17:39 GMT+08:00