China stocks began 2016’s final week on a bearish note, as lower commodity prices hurt raw material and energy shares.
Hong Kong markets were closed on Monday for a holiday.
The CSI300 index was down 0.6 per cent at 3,286.47 points at the end of the morning session, while the Shanghai Composite Index had dropped 0.8 per cent to 3,085.82 points.
Zhang Qi, analyst at Haitong Securities in Shanghai, said the sentiment was dampened by liquidity stress toward the year-end as demand for cash increased.
Also curbing risk appetite was news late on Friday that China’s securities regulator urged five investment banks to correct their faults unveiled in a recent inspection, while the Shanghai Stock Exchange stepped up a crackdown on book-cooking ahead of the release of annual reports.
Raw material stocks led Monday’s sell-offs, with an index tracking the sector down more than 2.1 per cent at the lunch break.
Shares of Baoshan Iron & Steel Co Ltd and WuhanIron and Steel Co Ltd retreated 2.9 per cent and 2.6 per cent, respectively, as futures contract of rebar lost around 3.3 per cent.
An index tracking energy stocks lost nearly 2 per cent after futures contract of coke slumped.
Reflecting concerns about recent pollution in Beijing and elsewhere, healthcare stocks gained nearly 0.6 per cent, bucking the board trend.
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