China shares end flat as property slowdown fears cloud sentiment

BEIJING Tue May 6, 2014 3:17am EDT

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BEIJING May 6 (Reuters) - China shares ended flat on Tuesday, surrendering gains of the morning session as investor sentiment cooled on worries about rapidly slowing demand in the key real estate sector.

The Shanghai Composite Index ended flat at 2,028.04 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings was also flat.

The CSI300 real estate sub-index underperformed in the afternoon session, dropping 0.4 percent on the day.

The sector has been hit by a string of reports over the past few days indicating further slowing, including news on Tuesday that another city will introduce more measures to prop up the local market.

Real estate developer Financial Street Holdings Co Ltd , was the worst hit, closing down 7.6 percent after the firm said it expected its net profit to decrease between 30 and 50 percent over the first half of 2014.

But other major losers from Monday's deeper sell-off regained ground. China Vanke Co Ltd was up 0.7 percent, while Beijing Urban Construction and Investment Co Ltd gained 1.2 percent.

Struggling steel producer Inner Mongolia BaoTou Steel Union Co Ltd saw its share price jump 7.1 percent after it acquired rare earth assets from its parent company Baogang Group as part of plans to focus more on rare earth production.

The Hong Kong stock exchange was closed on Tuesday for a holiday to mark the Buddha's birthday and will resume trading on Wednesday, May 7. (Reporting By Natalie Thomas; Editing by Jacqueline Wong)

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