* SSEC -1.21%, CSI300 -1.28%
* Shares erase early gains after regulator comment on
* Foreign investors net sellers through Stock Connect
SHANGHAI, March 2 (Reuters) - China's benchmark stock
indexes fell on Tuesday after the banking and insurance
regulator said it was studying plans to manage inflows and
prevent market turbulence, with consumer firms leading the
decline on foreign investor selling.
** The China Banking and Insurance Regulatory Commission warned
of the risk of bubbles bursting in foreign markets, and said the
country was studying measures to manage capital inflows to
prevent domestic market turbulence.
** The comments saw the benchmark Shanghai Composite index
erase early gains to close 1.21% lower at 3,508.59.
** The blue-chip CSI300 index fell 1.28%, with the
consumer staples sector down 2.85%, the financial
sector sub-index down 1.02% and the healthcare
sub-index 2.28% lower.
** Refinitiv data showed foreign investors were net sellers of
Chinese A-shares through the Stock Connect programme.
** Distillers, which have been favoured investment targets of
foreign investors, dragged the consumer index lower. Kweichow
Moutai Co Ltd slumped 4.63% after a 1.66% rise on
Monday. Wuliangye Yibin Co Ltd fell 2.88%.
** Chinese equities have also come under pressure in recent
sessions on worries around policy tightening, and investors now
eye the parliamentary session that will chart a course for
economic recovery and unveil a five-year plan to fight
** The smaller Shenzhen index ended down 0.76% and the
start-up board ChiNext Composite index was weaker by
** Around the region, MSCI's Asia ex-Japan stock index
was weaker by 0.19%, while Japan's Nikkei index
closed down 0.86%.
** At 07:06 GMT, the yuan was quoted at 6.4735 per
U.S. dollar, 0.1% weaker than the previous close of 6.4673.
** So far this year, the Shanghai stock index is up 1% and the
CSI300 has risen 2.7%, while China's H-share index listed in
Hong Kong is up 5.9%. Shanghai stocks have declined 0.01% this
(Reporting by Andrew Galbraith; Editing by Subhranshu Sahu)