China's blue-chip index fell for a third consecutive day on Wednesday, but the main Shanghai Composite index rose as investors weighed government support for continued growth against the impact of the U.S.-China trade war.
At the close, the Shanghai Composite index was up 0.2 per cent at 2,725.84.
The blue-chip CSI300 index was down 0.22 per cent, with its financial sector sub-index higher by 0.22 per cent, the consumer staples sector down 2.64 per cent, the real estate index up 0.12 per cent and healthcare sub-index down 1.18
U.S. President Donald Trump on Tuesday repeated his threat to impose tariffs on $267 billion worth of additional Chinese imports if China retaliates for the recent levies and other measures the United States has taken in the countries' escalating trade war.
China must take strong stimulus measures to support growth, with the country in a "critical" period of stabilising its economy, according to a commentary in the Global Times, a state-backed Chinese tabloid.
Risks to the global financial system have risen over the past six months and could increase sharply if pressures in emerging markets escalate or global trade relations deteriorate further, the International Monetary Fund said on Wednesday. But the IMF's chief economist said he was not concerned about China's ability to defend its currency.
China's yuan is forecast to pare some of its recent losses against the dollar over the coming year on hopes that risks from an escalating U.S.-China trade war and a deep sell-off in emerging markets will subside, a Reuters poll found. At 07:12 GMT, the yuan was quoted at 6.9211 per U.S. dollar, 0.07 per cent firmer than the previous close of 6.926.
The smaller Shenzhen index ended down 0.15 per cent and the start-up board ChiNext Composite index was higher by 0.056 per cent.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.14 per cent, while Japan's Nikkei index closed up 0.16 per cent.
The largest percentage gainers in the main Shanghai Composite index were Shenzhen Geoway Co Ltd, up 10.11 per cent, followed by Hengtong Logistics Co Ltd, gaining 10.03 per cent and Delixi Xinjiang Transportation Co Ltd, up by 10.01 per cent.
The largest percentage losses in the Shanghai index were Shanghai Lingang Holdings Co Ltd down 10.01 per cent, followed by Shanghai Lingang Holdings Co Ltd losing 10.01 per cent and Sinomach Automobile Co Ltd down by 10.01 per cent.
So far this year, the Shanghai stock index is down 17.6 per cent, the CSI300 has fallen 18.6 per cent while China's H-share index listed in Hong Kong is down 10.6 per cent. Shanghai stocks have declined 3.39 per cent this month.
About 11.35 billion shares were traded on the Shanghai exchange, roughly 100.5 per cent of the market's 30-day moving average of 11.29 billion shares a day. The volume in the previous trading session was 11.68 billion.
As of 07:12 GMT, China's A-shares were trading at a premium of 22.93 per cent over the Hong Kong-listed H-shares. ** The Shanghai stock index is below its 50-day moving average and below its 200-day moving average.
The price-to-earnings ratio of the Shanghai index was 11.54 as of the last full trading day, while the dividend yield was 2.7 per cent. ** So far this week, the market capitalisation of the Shanghai stock index has fallen by 3.54 per cent to 29.03 trillion yuan.
(With inputs from agencies.)