HONG KONG, June 3 China shares ended weaker on Tuesday, with Yili, one of the country's biggest milk powder makers, extending losses and being the biggest drag for both indexes.
The Shanghai Composite Index finished flat at 2,038.31 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings inched down 0.3 percent.
Inner Mongolia Yili Industrial Group tumbled 7.8 percent, closing at its lowest since June 28, 2013. A China Business News report said four subsidiaries of Yili failed to make the latest list of qualified infant formula producers.
Bright Dairy & Food shed 3.8 percent, also a top CSI300 percentage loser.
Chinese banks were stronger bolstered by further monetary easing measures. Bank of China climbed 1.9 percent to its highest closing this year.
Last week, China's cabinet announced fresh supportive measures, including cutting reserve requirement ratios (RRR) for more commercial banks, expanding re-lending and bond financing to support small firms. (Reporting by Grace Li; Editing by Jacqueline Wong)