Shanghai shares end flat amid cautious market sentiment
Shanghai shares closed flat today after investors turned cautious following the more than one percent rise in the key index on Monday.
The Shanghai Composite Index edged down 0.10 percent to close at 2,777.98 points.
Shares of brokerages, mining companies and building materials suppliers were among the biggest decliners.
Gao Ting, head of China Strategy at UBS Securities, said that the A-shares’ current valuation is lower than their historical average and so investors became cautious.
The A-share market’s total turnover was below 230 billion yuan (US$33.8 billion) on August 22, hitting a new low since January 2016 when the circuit breaker mechanism was in place, according to data provided by UBS Securities.
Guotai Junan Securities said in a report that investors took a wait-and-see attitude toward the A-share market.
Hangxiao Steel Structure Co Ltd dropped 8.37 percent to close at 4.82 yuan and Anyuan Coal Industry Group Co Ltd shed 5.14 percent to 2.40 yuan.