Mainland stocks end higher after solid profit data released

Chinese mainland stocks erased earlier losses to end higher on Tuesday.

The benchmark Shanghai Composite Index rose 0.18 percent, closing at 3,191.20 points.

Profits of mainland’s industrial companies rose 16.7 percent in May year- on- year, accelerating from April’s 14 percent growth.

However, the smaller Shenzhen Component Index eased slightly, closing down 0.02 percent to 10,535.36 points on Tuesday.

Analysts said that investors were cautious before the mid- year earnings season.

The blue- chip CSI300 index gained 0.18 percent, to 3,674.72 points by the end of trading on Tuesday. For the last week, CSI300 surged 3 percent, marking the best week in 2017.

Some investors aren’t sure if the blue- chip index could run up much further, according to a Reuters report on Tuesday, as the central bank sent out some signs to continue keeping liquidity conditions relatively tight.

On Tuesday, the People’s Bank of China did not carry out open market operations for the third day in a row, citing relatively high liquidity level in the banking system.

“In the future, liquidity will remain relatively tight. Under such a backdrop ... there’s limited room for blue- chips to rise further,” Huajin Securities analyst Wang Gang said in a Reuters report.

Sector performance was mixed. While real estate stocks dragged behind, bank stocks led gains.