Mainland indexes claw back above even, carried by energy sector

Chinese mainland stocks recouped early losses to finish in the black on Monday, as gains in energy stocks offset weakness in real estate developers following fresh measures to cool the property market.

The blue- chip CSI 300 index crept up 0.11 percent to 3,449.61 points.

The benchmark Shanghai Composite Index added 0.41 percent to 3,250.81 points, while the Shenzhen Component Index closed 0.16 percent higher at 10,532.33 points.

The impact of earlier property cooling measures by many cities may have been shortlived, data showed on Saturday. Home price growth accelerated again in February after slowing in the previous four months.

Over the past week, a number of local governments have stepped up restrictions on property investment, and the central government vowed to control bank lending to the sector.

An index tracking the real estate sector posted its worst day in three months, after more Chinese cities imposed fresh property restrictions over the weekend.

Last week, the country’s central bank raised short- term interest rates for the third time.

“The market is concerned about two things: whether the economic recovery is sustain- able, and the reality of tighter liquidity,” Galaxy Securities said in its latest strategy report.

The brokerage added that upbeat economic data offers “trading opportunities” for investors, but warned that the recovery may fade in the second half, when tighter liquidity will also add pressure to the market.

Sector performance was mixed. While property stocks dragged on the market, energy firms rallied, led by heavyweight China Shenhua after the country’s largest coal miner announced a spectacular dividend payment proposal.

Shares in the coal miner surged by the 10 percent daily limit to close at a 19- month high, as the company proposed to pay dividends of 59 billion yuan ($ 8.54 billion) in cash.