China stocks slip

China's key stock index ended 0.55 percent lower on Thursday after blue chips slid in late trade, but several Sichuan-area shares rose on expectations of strong demand from reconstruction efforts after a devastating earthquake.
Analysts and local media noted talk that the government had been encouraging market participants to help preserve market stability in the aftermath of Monday's quake, which killed 15,000 in south-western China.
They warned, however, that any boost from such efforts was not likely to be sustainable. "We quite understand that the officials are worried the index might tumble, but the effectiveness of such means of supporting the market would quickly fade, and this might increase risks in the medium term," one trader said.
The benchmark Shanghai Composite Index had traded higher for most of the session before slipping late in the day to end at 3,637.324 points. The intraday high was 3,706.722. The index had gained 2.73 percent on Wednesday, with analysts noting that fears had eased regarding the potential economic harm from the quake.
Financial business magazine Caijing reported on its website on Thursday that several mutual fund managers had been contacted the previous day by regulators who asked for help in maintaining stability in the market. Losing stocks in Shanghai outnumbered gainers by 565 to 308, but more than 25 Shanghai and Shenzhen A shares rose by their 10 percent daily limit.
Turnover in Shanghai A shares remained active at 112.2 billion yuan ($16.0 billion), although this was down from Wednesday's 121.9 billion yuan. "We expect the index to fluctuate between 3,500 and 3,800 points this month, with the impact from the quake remaining a concern for the medium term and likely to limit any gains in the index," said Chen Huiqin, analyst at Huatai Securities.
She said practical concerns about the effects of the quake seemed to have prevailed during the market's late retreat. Deputy central bank governor Su Ning said on Thursday that the quake had created greater uncertainty for the Chinese economy and complicated the task of implementing macroeconomic controls, but added that the impact of the disaster would be limited and short-lived.
Property giant Vanke ended down 0.63 percent at 21.95 yuan after rising 1.86 percent by midday, while Industrial and Commercial Bank of China, the country's largest lender, fell 1.27 percent to 6.21 yuan.