China stocks end lower as property firms drop on tax scheme plans

SHANGHAI: China stocks closed lower on Tuesday, pulled down by property shares as sustained worries over a planned pilot real-estate tax scheme dented home-buyer sentiment and risk appetite.

The blue-chip CSI300 index fell 0.3% to 4,963.10, while the Shanghai Composite Index also lost 0.3% to 3,597.64 points.

Property firms extended losses and finished 2.8% lower, fuelled by concerns over a planned pilot real estate tax scheme.

The property tax, likely to be tested initially in first- and second-tier cities, "will hurt home-buyer sentiment and discourage investment demand, and thus, deepen the physical property market downturn," brokerage CLSA wrote in a note.

"We expect more property policy fine-tuning to offset the negative impact of the property market downturn and weak economic outlook," CLSA added.

The healthcare sub-index and the agriculture sub-index lost more than 1% each.

Shares in information technology and construction engineering added more than 1% each.

China Galaxy Securities said currently there is no structural opportunity in the market, but companies with good earning results in the third quarter are recommended.

Separately, China's Vice Premier Liu He spoke with U.S. Treasury Secretary Janet Yellen on Oct. 26 via video call and talked about the macroeconomic situation and bilateral relations, according to China's commerce ministry.