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China stocks shed early gains to end a tick lower on Monday, amid renewed concerns over the coronavirus outbreak as Wuhan reported its first cluster of infections since the lockdown was lifted a month ago.

At the close, the Shanghai Composite index was down 0.02% at 2,894.80. The blue-chip CSI300 index was down 0.09%, with its financial sector sub-index climbing 0.06%, the consumer staples sector dropped 0.79%, the real estate index down 0.01% and the healthcare sub-index down 1.59%.

The smaller Shenzhen index ended down 0.24% and the start-up board ChiNext Composite index was weaker by 1.055%. Wuhan, the epicentre of the novel coronavirus outbreak in China, reported on Monday five new confirmed cases, all of whom live in the same residential compound.

China reported 17 new COVID-19 cases in the mainland on May 10, marking the highest daily increase since April 28.

The country's central bank on Sunday signalled more policy support for the economy and said it lowered interest rates on its standing lending facility (SLF) in April.

China's central bank said on Sunday it will step up counter-cyclical adjustments to support the economy and make monetary policy more flexible to fend off financial risks.

Copyright Reuters, 2020

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