China stocks end lower on regulatory crackdown

China stocks closed lower on Tuesday as regulators tightened measures against speculation and abnormal trading practices, while Hong Kong shares ended weaker on regional market weakness.

** China's blue-chip CSI300 Index .CSI300 ended the session down 0.3%, while the Shanghai Composite Index .SSEC edged 0.01% lower. In Hong Kong, the Hang Seng Index .HSI declined 0.3%.

** China's securities watchdog fined a prominent stock commentator 83 million yuan ($11.92 million) for market manipulation and imposed a three-year trading ban, in its latest crackdown against market misbehaviours.

** Over the past week, Shanghai and Shenzhen stock exchanges each took regulatory measures against hundreds of abnormal trading practices such price pumping and false orders. The bourses also launched probes into several listed companies over allegedly misleading statements.

** The measures reflect regulators' intention to slow the pace of market gains. Last week, China tightened margin financing requirements after the Shanghai market hit decade-highs in record turnover.

** On the macro front, China left its benchmark lending rates unchanged on Tuesday, as expected, after the economy hit its growth target of 5% in 2025.

** In Hong Kong, sentiment was doused by weak Asian markets as a resurgence of trade-war concerns curbed risk appetite.

** Chinese sectors that had been targeted by speculators, including satellite .CSI931585, defence .CSI399973 and rare-earths .CSI930598 fell the most on Tuesday.

** Once high-flying tech-related sectors, including artificial intelligence .CSI930713, cloud computing .CSI399808 and biotech .CSI931440, also saw sharp corrections.

** But real estate stocks .CSI000952, .HSMPI jumped as bearish December data fuelled hopes for fresh government support.

** In Hong Kong, tech stocks .HSTECH and raw material plays .HSCIM were among the biggest decliners.

($1 = 6.9605 Chinese yuan)

-Shanghai Newsroom/Reuters