Mainland’s stocks down amid growth concerns

The main stocks indexes in the Chinese mainland fell on Wednesday amid some concerns over an economic slowdown and regulatory tightening.

The blue- chip CSI300 index fell 0.78 percent, to 3,646.17 points, while the Shanghai Composite Index lost 0.56 percent to 3,173.20 points.

Most sectors lost ground, led by real estate and consumer stocks that rallied the most recently.

China is capable of achieving its full- year growth target and controlling systemic risks despite challenges, Premier Li Keqiang said on Tuesday during the World Economic Forum.

The country has targeted 6.5 percent growth this year. Its economy, which grew 6.9 percent in the first quarter, generally remained on a solid footing in May, but prudent monetary policy, a cooling housing market and slowing investment reinforced some views that it may gradually lose momentum in the coming months.

However, there are signs of strong foreign appetite for the blue- chips, after MSCI’s inclusion.

On Tuesday, Hong Kong’s biggest yuan- denominated exchange- traded fund CSOP FTSE China A50 ETF, which buys mainland shares under the so- called RQFII scheme, drew inflows of roughly 1.5 billion yuan ($ 220.6 million), its largest daily inflow this year.

MSCI’s inclusion would “help prop up the value of [ mainland’s] quality blue- chips, and would help stabilize its stock market,” Fang Xinghai, vice chairman of the China Securities Regulatory Commission, told a seminar on Tuesday.