2 Min Read
SHANGHAI, Dec 20 (Reuters) - China stocks slid on Tuesday, as the authorities tightened regulations to prevent financial risks and asset bubbles.
The blue-chip CSI300 index fell 0.6 percent, to 3,309.06 points, a two-month low, while the Shanghai Composite Index lost 0.5 percent to 3,102.88 points, the lowest since early November.
China's economic growth is expected to cool in 2017 as its top leaders flag tighter monetary policy and further curbs to clamp down on asset price bubbles, especially in the property market, even as a sharp drop in the yuan has fed fears of markets turmoil.
The central bank said on late Monday it would tighten supervision of shadow banking businesses by including off-balance sheet wealth management products, widely viewed as a source of financial risk, into its risk-assessment framework next year.
The move represents another step by Beijing to rein in speculative credit growth in an effort to prevent asset price bubbles.
Adding to pressure was a turbulent bond market, with China's 10-year treasury futures for March delivery plumbing a record intraday low, raising persistent concerns over liquidity stress.
An across-the-board slump in the commodities futures market in afternoon trading led heavyweight resources stocks lower.
Most sectors lost ground, led by banks and properties. Gains were only seen in infrastructure shares.
China Vanke closed down 3.7 percent to a more than four-month low. The stock is down nearly a quarter since the end of November. (Reporting by Luoyan Liu and John Ruwitch; Editing by Jacqueline Wong)