China stocks snapped a six-session winning streak on Tuesday, led lower by real estate and resource firms, as investors booked profits after a recent strong rally. Market participants continued to ponder the impact of certain amendments in the wording of China's constitution. China's ruling Communist Party on Sunday set the stage for President Xi Jinping to stay in office indefinitely, with a proposal to remove a constitutional clause limiting presidential service to just two terms in office.
"Rebalancing the Chinese economy away from investment- and export-led growth towards domestic consumption will remain on hold," Laura Eaton, an analyst at Fathom Consulting, wrote in a report. "President Xi Jinping will not tolerate the slowdown associated with rebalancing to tarnish his name as he builds a case to justify a third term in power," Eaton added.
Anbang Insurance Group Co Ltd said on Monday it fully supported the Chinese insurance regulator's decision to temporarily take control of the company, and remains committed to the development of its overseas subsidiaries. Most Anbang-related firms, including developer China Vanke and lender China Merchants Bank, fell on Monday. At the close, the Shanghai Composite Index was down 1.1 percent at 3,292.07.
The blue-chip CSI300 index was down 1.4 percent, with its financial sector sub-index lower by 1.91 percent , the consumer staples sector down 1.61 percent, the real estate index shed 3.18 percent while healthcare sub-index fell 1.04 percent. The smaller Shenzhen index ended down 0.34 percent and the start-up board ChiNext Composite index was higher by 0.83 percent.
The largest percentage gainers in the main Shanghai Composite index were AECC Aero Science and Technology Co Ltd up 10.03 percent, followed by Zhongyuan Union Cell & Gene Engineering Corp Ltd gaining 10.03 percent and China Avionics Systems Co Ltd up by 10.01 percent.
The largest percentage losses in the Shanghai index were Aluminum Corp of China Ltd down 10.03 percent, followed by Harbin Pharmaceutical Group Co Ltd losing 8.61 percent and HPGC Renmintongtai Pharmaceutical Corp down by 8.33 percent. So far this year, the Shanghai stock index is down 0.68 percent, the CSI300 is up 0.69 percent this year, while China's H-share index listed in Hong Kong is up 9.6 percent. Shanghai stocks have declined 4.35 percent this month.
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