China stocks ended slightly higher on Thursday, despite a slump in Shanghai B shares amid worries over tight liquidity and stepped-up regulation.
The blue-chip CSI300 index rose 0.4 per cent, to 3,461.98 points, while the Shanghai Composite Index added 0.1 per cent, to 3,248.55 points.
The index tracking the dollar-dominated Shanghai B-shares tumbled as much as 3.9 per cent, before closing 1.7 per cent lower, posting its worst day in two months. Shares traded in Shanghai and Shenzhen exchanges in foreign currency are B shares, while A shares are those denominated in Yuan.
“The sharp drop in the Shanghai B-share market, is mainly due to investors’ concerns over tight liquidity in the country’s interbank market and stepped-up regulation on domestic financial institutions,” said Yang Weixiao, an analyst with Founder Securities, adding the soured sentiment could spread to the A-share market.
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