Foreign buying robust as prices edge down

Chinese stocks edged down on Wednesday though foreign buying was robust.

The benchmark Shanghai Composite Index ended 0.57 percent lower to 2,734.52 points, while the smaller Shenzhen Component Index shed 0.10 percent at 9,951.84 points. The blue chip CSI300 Index was down 0.30 percent to 3,675.08 1points.

Turnover on the two major bourses was 584.8 billion yuan (US$82.63 billion), compared with 561.8 billion yuan in the previous trading session.

Most sectors lost, with losers outnumbering gainers by 2,319 to 1,213 on the two bourses.

However foreign capital kept flowing in. Chinese mainland markets saw a net inflow of 5.45 billion yuan via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

This ended the highest single-month net outflow of overseas capital recorded in March, which reached 67.87 billion yuan.

Guosheng Securities said that as domestic consumption was gradually recovering, overseas capital was gradually flowing back, with the consumption sector the most attractive for foreign investors.

The automobile sector posted a strong performance on news that China is to extend subsidies and tax exemptions for new energy vehicle purchases by another two years.

Share prices in the sector surged, with six companies hitting the daily limit of 10 percent and 11 companies increased by more than 5 percent.