July 30, 2020 / 7:47 AM / 15 days ago

China shares end lower on profit-taking; tech, resources lead slide

SHANGHAI, July 30 (Reuters) - China shares closed lower on Thursday, with tech and resources shares leading the declines, as some investors booked profits following the market's strong finish in the previous session.

** The blue-chip CSI300 index ended down 0.5% to 4,656.15 and the Shanghai Composite Index 0.2% to 3,286.82.

** Stocks were steady in morning trading, after the U.S. Federal Reserve's pledge to limit damage from the pandemic lifted sentiment across global equity markets.

** But signs of profit-taking gathered pace after the midday break, piling pressure on a market that jumped over 2% on Wednesday due to bargain-hunting. The tech-heavy STAR Market <STAR 50>, which surged 5.5% on Wednesday, lost 0.3%.

** But healthcare stocks rose on reports that Chinese drug company Sinopharm and Parana state have agreed to launch the fourth major COVID-19 vaccine trial in Brazil and will seek regulatory approval in the next two weeks. ** Meanwhile, in its latest strategy report, UBS China research team identified some sectors that could outperform the broader market despite deteriorating Sino-U.S. relations. They include premium beer makers, leading construction firms, infrastructure companies and Chinese players in Apple's supply chain.

** Goldman Sachs estimates that China's newly-launched STAR 50 index - China's answer to Nasdaq 100 - could attract $11 billion in potential passive money inflows over the next five years. (Reporting by Shanghai Newsroom; editing by Uttaresh.V)

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