China's major stock indexes post modest gains but small-caps extend losses

Investors look at an electronic board showing stock information on the first trading day after the New Year holiday at a brokerage house in Shanghai.
Investors look at an electronic board showing stock information on the first trading day after the New Year holiday at a brokerage house in Shanghai.PHOTO: REUTERS

SHANGHAI (REUTERS) - China's benchmark stock indexes rose on Wednesday (July 19), but small caps extended losses on fears that regulators will roll out more tightening measures as they clamp down on riskier types of financing.

The blue-chip CSI300 index rose 0.4 per cent to 3,682.26 points by about 10am, while the Shanghai Composite Index also gained 0.4 per cent to 3,199.40.

Banks and resources stocks led gains, with an index tracking coal shares up nearly 4 per cent.

But Shenzhen's start-up board ChiNext slid about 0.4 per cent.

ChiNext slumped over 5 per cent on Monday after President Xi Jinping vowed on Sunday to take stronger action to deal with financial risks, as he announced the establishment of a new financial oversight body.

Nearly 500 stocks, most of them small firms, plunged the 10 per cent limit on Monday in what some media described as China's "Black Monday".

China's securities regulator said late on Tuesday that it would support efforts to curb risks in capital markets, and would improve the quality of listed companies and improve the delisting system.