SHANGHAI: China’s blue-chip index retreated on Tuesday, pressured by healthcare and consumer companies, as upbeat economic data raised worries of policy tightening.
The blue-chip CSI300 index fell 0.4% to 5,140.34, while the Shanghai Composite Index was flat at 3,482.97.
As of last close, the CSI300 had rebounded nearly 6% from a recent trough hit on March 25, while SSEC had gained more than 4% in the same period.
Falling the most on Tuesday, the CSI300 healthcare index and CSI300 consumer discretionary index dropped 1.7% and 1.6%, respectively.
Recent economic data has been robust, but analysts warn that it could lead to concerns of inflation and policy tightening.
A recovery in China’s services sector picked up speed in March as firms hired more workers and business optimism surged, although inflationary pressures remained, a private sector survey showed.
The Caixin/Markit services Purchasing Managers’ Index (PMI) rose to 54.3, its highest since December, and well above the 50-mark that separates growth from contraction on a monthly basis.
If China’s inflation and GDP growth data, due later this month, beat expectations, policy tightening worries will be kindled, Huaan Securities said in a report.
Analysts said foreign investors becoming net sellers via the Stock Connect last week weighed on short-term sentiment and as the issuance of new mutual funds slowed substantially.
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