BEIJING, June 16 Reuters China shares ended lower on Wednesday, dragged down by losses in material and healthcare stocks, as investors worried over lofty valuations and the outcome of a U.S. Federal Reserve meeting that could prompt foreign outflows.
At the close of trade, the Shanghai Composite index was down 1.07 at 3,518.33 and the bluechip CSI300 index lost 1.67, having finished weaker on Tuesday.
Analysts said there was a lack of factors for any upside momentum, while lofty valuations in some parts of the market were a cause of concern.
The market was also under pressure from rising SinoWest tensions after G7 leaders took the Asian nation to task over a range of issues, which Beijing called a gross interference in the countrys internal affairs.
Among the worstperforming sectors on Wednesday, the material subindex slumped 3.08 as a report on restrictions over stateowned firms overseas commodity exposure accelerated a selloff in the sector.
The healthcare subindex lost 3.01, with sector heavyweight Wuxi AppTec Co Ltd sliding 5.53.
The smaller Shenzhen index ended down 2.34 and the startup board ChiNext Composite index was weaker by 4.18.
Investors are also nervous ahead of the U.S. Fed meeting, as Feds hawkishness would push the dollar higher, pressuring the yuan and weighing on the Ashare market by prompting foreign outflows, said Yan Kaiwen, an analyst with China Fortune Securities.
Chinas central bank has directed financial institutions to hold more…