China stocks ended slightly lower on Monday as sentiment was dampened by warnings from top policymakers about asset bubbles and uncertainties around the US presidential election The blue chip CSI300 index fell 0.1 percent, to 3,336.28, while the Shanghai Composite Index eased 0.1 percent to 3,100.49 points.
For the month, the CSI was up 2.6 percent, while the SSEC was up 3.2 percent. China must "adhere to prudent monetary policy and maintain reasonably ample liquidity while focusing on controlling asset bubbles and preventing economic and financial risks," President Xi Jinping on Friday told a meeting of the Politburo, the top decision-making body of the ruling Communist Party.
Adding to investors' worries was news that the Federal Bureau of Investigation (FBI) is planning to review more emails related to Democratic presidential candidate Hillary Clinton's private server, pushing up safe haven stocks, in particular gold miners.
Also piling up pressure on the market was another round of 14 initial public offerings approved to raise a combined total of up to 10.1 billion yuan.
Yet fund managers polled by Reuters are allocating more funds for mainland equities over the next three months, suggesting they see a rebound from a one-year low, although some remained cautious about the short-term prospects.
"Opportunities outweigh risks in the short run, with better chances for thematic or individual stocks than for the broad indexes," a South China-based fund manager said, adding signs of economic stability, restrictions on property purchase, along with signs of a bubble in the bond market all made the stock market more attractive.
Clinton had opened a recent lead over her unpredictable Republican rival Donald Trump in national polls, but it had been narrowing even before the email controversy resurfaced.
Traders say a Trump victory risks triggering a sell-off in global markets as he is seen as prone to trade protectionism.
Sentiment was also hurt by a near 6 percent slump in index heavyweight AIA Group.
The world's third-largest life insurer by market value hit a 3-1/2-month low after China's card company UnionPay said it would tighten rules over how mainland customers use its debit and credit cards to purchase Hong Kong insurance products. But the weakness in Hong Kong's financial shares was offset by a rebound in IT and property stocks.
Fan Gang, a senior Chinese central banker, sought to reassure markets about Beijing's commitment to exchange rate reform in the wake of a renewed slide in the yuan and worries that authorities will be moving to a more interventionist stance to curb currency volatility.
Financial and transportation shares sagged but property shares rebounded.
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