SHANGHAI: China shares finished higher on Wednesday after China’s central bank boosted short-term funding to ease worries over tightening liquidity amid a faltering recovery, but losses in financial, tech and real estate sectors capped gins.

At the close, the Shanghai Composite index was up 0.74% at 3,540.38.

The blue-chip CSI300 index was up 0.2%, turning around from a small dip at midday. It was led by consumer staples firms, which rose 1.91%.

China’s central bank offered 50 billion yuan ($7.72 billion) through seven-day reverse repos into the banking system, bigger than daily injections in recent months, in what traders saw as a bid to support liquidity and lift market sentiment.

Foreign investors helped lift A-shares, with Refinitiv data indicating inflows of more than 7.5 billion yuan ($1.16 billion) on the day through the Northbound leg of the Stock Connect programme.

But underscoring continued financial risks in the real estate sector that some investors worry could spread, a supplier to debt-laden developer China Evergrande Group said Evergrande had failed to pay some overdue bills.

The real estate index lost 3.67% and the financial sector sub-index slipped 1.37%. The CSI Info Tech index fell 0.74%.

The smaller Shenzhen index ended up 0.39% and the start-up board ChiNext Composite index was 0.54% higher.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.23%, while Japan’s Nikkei index closed down 0.03%.

At 0702 GMT, the yuan was quoted at 6.4774 per US dollar, 0.11% weaker than the previous close of 6.4705.

So far this year, the Shanghai stock index is up 1.9% and the CSI300 has fallen 6%, while China’s H-share index listed in Hong Kong is down 15.8%. Shanghai stocks have risen 4.21% this month.