Mainland stocks slip again as sustained rally remains elusive

Chinese mainland stocks took another step back on Thursday, which experts attributed to the instability of funds, shrinking trading volume and accumulating market risk.

The benchmark Shanghai Composite Index slipped 0.13 percent to close at 3,112.35 points, while the Shenzhen Component Index finished the day 0.26 percent lower at 10,788.97 points.

The CSI 300 Index of the biggest companies traded in Shanghai and Shenzhen shed 0.27 percent to close at 3,345.70 points.

The ChiNext Index, which tracks the country’s NASDAQstyle board for growth enterprises, inched down 0.09 percent to 2,182.48 points.

A total of 453.92 billion yuan ($ 66.97 billion) in shares changed hands on the Shanghai and Shenzhen exchanges on Thursday, down from 550 billion yuan on the previous trading day. About 1,000 stocks rose on Thursday while around 1,500 stocks fell.

Sectors diverged on Thurs- day with transportation equipment and aviation stocks leading the gainers, while telecom and healthcare shares were among the biggest losers.

Analysts from Huafu Securities blamed the last two days of small losses on investments funds quickly jumping in and out of the market, as well as higher risks inherent in a market on an upswing.

They also said that the sluggish trading volume makes it difficult for major indexes to have a breakthrough, even though the recent trend has been upward. They cautioned investors against blindly buying into stocks that suddenly soar. Instead, they advised investors to sell off some of their holdings that have recently gone up in value.

Analysts from Shanxi Securities attributed the recent two- day decline to profit taking. They said that the shrinking trading volume also placed a ceiling on the major indexes. As for investment opportunities, they recommended buying into stocks in the healthcare and senior care industries.