SHANGHAI stocks closed flat today, posting a weekly loss of 2.25 percent as investors turned cautious due to tighter regulatory scrutiny and profit-taking in Xiongan related shares.
The Shanghai Composite Index edged up 0.03 percent to 3,173.15 points.
The Chinese Insurance Regulatory Commission called on insurance companies to strengthen supervision of operations and investment activities to correct market disorder yesterday.
“The downward trend remains intact as regulators will likely maintain their strict stance over financial scrutiny,” said Wu Kan, a Shanghai-based fund manager at Shanshan Finance Co. “The market can hardly avoid the impact from government policies.”
Energy and materials shares led weekly declines. Shares linked to Xiongan New Area are among the poorest performers today.
The weak market sentiment is attributed to profit-taking in Xiongan related stocks, and investors worry about growth peaking and deceleration of corporate profits, said Gao Ting, strategist of UBS.
Xiongan related stocks, including construction materials maker BBMG, developer China Fortune Land and Tianwei Baobian Electric, tumbled.
BBMG Corporation fell 6.19 percent to 6.97 yuan (US$1.01), China Fortune Land Development Co lost 5.8 percent to 34.93 yuan, and Tianwei Baobian Electric Co lost 10 percent to 9.14 yuan.