SHANGHAI, Sept 10 (Reuters) - China shares shed early gains to end lower on Thursday, as more than 300 start-ups slumped earlier in the session after regulators moved to curb speculation on the tech-heavy ChiNext board.
** Shares in China’s start-up firms plunged as investors retreated after a few stocks were suspended from trading due to “abnormal volatility” amid reports of government measures to crack down on speculation.
** The start-up board ChiNext Composite index, which gained more than 40% this year, fell 1.6% and Shanghai’s tech-focused STAR50 index lost 1.38%. More than 300 start-ups dropped more than 10% on Thursday, including 50 companies hitting their downside trading limits. ** Analysts said investor sentiment was dented after some ChiNext stocks, including Xinjiang Tianshan Animal Husbandry Bio-Engineering, were suspended from trading on Wednesday due to “abnormal volatility”.
** Shares of Chinese telecom firms also tumbled, as pressure widened for Huawei Technologies with major suppliers expected to stop supplying to the telecom giant after new U.S. restrictions.
** The Shanghai Composite index was down 0.61% at 3,234.82, while the blue-chip CSI300 index fell 0.06%. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.72%, while Japan’s Nikkei index closed up 0.88%. ** About 31.25 billion shares were traded on the Shanghai exchange, roughly 94.5% of the market’s 30-day moving average of 33.07 billion shares a day. The volume in the previous trading session was 35.15 billion.
Reporting by Winni Zhou and Andrew Galbraith, Editing by Sherry Jacob-Phillips
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