Chinese markets dip as Communist Party mulling over indefinite term for Xi Jinping
China's major stock indices fell on Tuesday morning, led lower by real estate and resource firms, as investors booked profits after a six-session winning streak.
Market participants continued to weigh the impact of certain amendments in the wording of China's constitution.
China's ruling Communist Party on Sunday set the stage for President Xi Jinping to stay in office indefinitely, with a proposal to remove a constitutional clause limiting presidential service to just two terms in office.
"President Xi Jinping will not tolerate the slowdown associated with rebalancing to tarnish his name as he builds a case to justify a third term in power," Eaton added.
Anbang Insurance Group Co Ltd said on Monday it fully supported the Chinese insurance regulator's decision to temporarily take control of the company, and remains committed to the development of its overseas subsidiaries.
Most of Anbang-related firms, including developer China Vanke and lender China Merchants Bank, eased on Monday.
The Chinese government's action on Anbang, along with the announcement that its chairman was being prosecuted for economic crimes, dramatically illustrated Beijing's willingness to curtail big-spending conglomerates as it cracks down on financial risk.
At 04:03 GMT, the Shanghai Composite index was down 30.34 points or 0.91 percent at 3,299.23.
China's blue-chip CSI300 index was down 1.08 percent, with its financial sector sub-index lower by 1.37 percent, the consumer staples sector down 0.63 percent, the real estate index down 2.67 percent and the healthcare sub-index down 0.68 percent.
Chinese H-shares listed in Hong Kong fell 0.58 percent at 12,759.27, while the Hang Seng Index was up 0.14 percent at 31,544.19.
The smaller Shenzhen index was down 0.2 percent and the start-up board ChiNext Composite index was higher by 0.96 percent.
Around the region, MSCI'sAsia ex-Japan stock index was firmer by 0.31 percent while Japan's Nikkei index was up 1.20 percent.
The yuan was quoted at 6.3062 per US dollar, 0.06 percent firmer than the previous close of 6.3103.
The largest percentage gainers in the main Shanghai Composite index were Easysight Supply Chain Management Co Ltd up 10.01 percent, followed by Henan Huanghe Whirlwind Co Ltd gaining 9.99 percent and Guangdong Meiyan Jixiang Hydropower Co Ltd up by 9.96 percent.
The largest percentage losses in the Shanghai index were Aluminum Corp of China Ltd down 10.03 percent, followed by HPGC Renmintongtai Pharmaceutical Corp losing 8.33 percent and Shanxi LuAn Environmental Energy Dev Co Ltd down by 7.15 percent.
So far this year, the Shanghai stock index is up 0.68 percent, while China's H-share index is up 9.6 percent. Shanghai stocks have declined 4.35 percent this month.
The top gainers among H-shares were Dongfeng Motor Group Co Ltd up 3.23 percent, followed by Great Wall Motor Co Ltd gaining 1.83 percent and Zhuzhou CRRC Times Electric Co Ltd up by 1.04 percent.
The three biggest H-shares percentage decliners were Air China Ltd which fell 2.86 percent, New China Life Insurance Co Ltd which lost 2.3 percent and Anhui Conch Cement Co Ltd down by 2.2 percent.
About 10.78 billion shares have traded so far on the Shanghai exchange, roughly 51.4 percent of the market's 30-day moving average of 20.96 billion shares a day. The volume traded was 18.86 billion as of the last full trading day.
As of 04:03 GMT, China's A-shares were trading at a premium of 26.91 percent over the Hong Kong-listed H-shares.
The Shanghai stock index is below its 50-day moving average and above its 200-day moving average.
The price-to-earnings ratio of the Shanghai index was 15.26 as of the last full trading day while the dividend yield was 1.9 percent.
So far this week, the market capitalisation of the Shanghai stock index has risen by 1.08 percent to 29.48 trillion yuan.
In Hong Kong, the sub-index of the Hang Seng index tracking energy shares rose 0.2 percent while the IT sector fell percent. The top gainer on Hang Seng was AIA Group Ltd up 4.43 percent, while the biggest loser was Country Garden Holdings Co Ltd which was down 3.10 percent.
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