BEIJING: China stocks closed mixed on Wednesday, with volatility easing as investor sentiment calmed following the market’s two-week-old rebound from an earlier collapse.
The key Shanghai Composite Index gained 0.2 percent, to 4,026.05 points, up for the fifth consecutive session.
But the CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.2 percent, to 4,157.16
There were signs of growing investor caution, as the Shanghai index has bounced nearly 20 percent from a seven-year low hit on July 9, and is approaching 4,500 points – widely seen both as a government bailout target, and a near-term ceiling.
“The stock market is still fragile, and the index level is not the only criteria to assess health of the market,” said Zhu Haibin, economist at JP Morgan in Beijing.
He added that the government needs to study market conditions carefully before they start withdrawing from the bailout.
With the market stabilising, investors have returned their focus to economic conditions, and corporate profit growth.
