China stocks end down as consumer firms weigh

China stocks fell on Wednesday, tracking losses on Wall Street where tech firms were hit hard on concerns over tighter government scrutiny on the industry.

At the close, the Shanghai Composite Index was down 1.40 percent at 3,122.29 points, while the blue-chip CSI300 index closed down 1.80 percent at 3,842.72 points.

The smaller Shenzhen index ended down 1.35 percent and the start-up board ChiNext index was weaker by 0.52 percent.

Losses were led by a 4.7 percent slump in the consumer sector, its worst day in more than two years, with bellwether Kweichow Moutai, based in Southwest China’s Guizhou Province, ending down 4.6 percent after posting full-year results.

Sectors including consumer firms that had robust gains in the past year or so might be falling out of favor with investors, said Chen Xiaopeng, an analyst with Sealand Securities.

As China attaches more importance to the quality of its economy, investors turned more to high-tech firms and companies in emerging industries.

Banking shares were relatively stable, down 0.10 percent, as the country’s top lenders reported their best profit growth in three years on better net interest margins.

The retreat on Wednesday pointed to fragile sentiment as many analysts suggested caution at a time when trade spat worries are pulling down sentiment.

The largest percentage gainers in the main Shanghai Composite Index were Tianjin Capital Environmental Protection Group Co up 10.02 percent, followed by Xinjiang Tianrun Dairy Co gaining 9.99 percent and Sinomach Automobile Co up by 9.3 percent.