China’s major stock indexes post modest gains but small-caps continue retreat

SHANGHAI, July 19 (Reuters) – China’s benchmark stock
indexes rose on Wednesday, but small caps extended losses on
fears that regulators will roll out more tightening measures as
they clamp down on riskier types of financing.

The blue-chip CSI300 index rose 0.4 percent to
3,682.26 points by 0202 GMT, while the Shanghai Composite Index
also gained 0.4 percent to 3,199.40.

Banks and resources stocks led gains, with an index tracking
coal shares up nearly 4 percent.

But Shenzhen’s start-up board ChiNext slid about
0.4 percent.

ChiNext slumped over 5 percent on Monday after President Xi
Jinping vowed on Sunday to take stronger action to deal with
financial risks, as he announced the establishment of a new
financial oversight body.

Nearly 500 stocks, most of them small firms, plunged the 10
percent limit on Monday in what some media described as China’s
‘Black Monday’.

China’s securities regulator said late on Tuesday that it
would support efforts to curb risks in capital markets, and
would improve the quality of listed companies and improve the
delisting system.
(Reporting by Samuel Shen and Andrew Galbraith; Editing by Kim
Coghill)


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