Stock markets lose steam as liquidity concerns persist

Shares closed 0.14 percent lower with sentiment stymied by persistent concerns over government credit-tightening measures, dealers said.

The Shanghai Composite Index, which covers both A and B shares, was down 4.39 points to 3,046.09 on turnover of 108.5 billion yuan ($15.9 billion).

"Trading volume is picking up, and the blue chips are seeing more demand, but it will take a lot more funds entering the market to give it a bigger and more sustainable boost," said Zhang Qi, an analyst from Haitong Securities.

Banks led the declines with Industrial and Commercial Bank of China down 0.4 per-cent to 4.86 yuan ($0.71).

Bank of China fell 0.5 percent to 4.15 yuan ($0.61).

Airlines bucked the trend, extending a two-day rally on hopes of a stronger yuan, which would help reduce the cost of buying planes and aviation fuel.

Air China rose 0.4 percent to 11.56 yuan ($1.69), while China Southern Airlines gained 0.4 percent to 6.91 yuan ($1.01).

Hong Kong stocks fell 0.25 percent Thursday as dealers took profits from the previous day's gains.
The benchmark Hang Seng Index was 53.82 points lower at 21,330.67. Turnover was HK$61.75 billion ($7.95 billion).

Source: Global Times