SHANGHAI, April 26 (Reuters) - China stocks reversed earlier
gains to end lower on Monday, as investors pocketed profits
following a recent strong rally.
** The blue-chip CSI300 index closed down 1.1% at
5,077.24, while the Shanghai Composite Index declined 1%
** The retreat came after the blue-chip index gained 3.4% in
the previous week, its best in more than two months.
** The tech-heavy start-up board ChiNext ended 0.8%
lower on Monday, having gained 14% from a trough hit on March
** Analysts said despite the recent rally, stocks could
continue to be rangebound given the uncertainties around
Sino-U.S. relations, liquidity and policies.
** "For now, investors should not expect a big rally, nor a
big slump, going ahead in the A-share market, as Beijing would
move to rein in market fluctuations to prevent risks," said
Zhang Chengyu, a Beijing-based hedge fund manager.
** Zhang said investors could train their eyes on small-cap
firms with hot investment themes, as volatility in large-caps
** Caution also prevailed as market participants awaited the
politburo meeting, the top decision-making body of China's
ruling Communist Party, for comments and guidance on policy
** Ahead of the meeting at end-April, investors need to
focus on the defensive side by sticking to stocks with solid
growth and reasonable valuations, Shanghai Securities said in a
** Around the region, MSCI's Asia ex-Japan stock index
was firmer by 0.45%, while Japan's Nikkei index
closed up 0.36%.
** At 07:34 GMT, the yuan was quoted at 6.4894
per U.S. dollar, 0.11% firmer than the previous close of 6.4963.
** As of 07:35 GMT, China's A-shares were trading at a
premium of 33.61% over the Hong Kong-listed H-shares.
(Reporting by Luoyan Liu and Andrew Galbraith; Editing by