China shares open down, gold stocks weaken

SHANGHAI, Sept 8 - China's benchmark stock index opened down 0.54 percent on Tuesday on profit taking after recent gains, led by gold shares, even after U.S. gold futures rose above $1,000.

The benchmark Shanghai Composite Index opened at 2,865.695 points after rising for five straight trading sessions, buoyed by factors, including that the stock regulator was pushing more securities mutal funds into the market.

Zhongjin Gold opened down 0.16 percent and Shandong Gold was down more than 1 percent after outperforming the rally in the market recently.

U.S. gold futures hit $1,000 an ounce for the first time since February as the dollar's weakness, concerns about the sustainability of the global economic recovery and worries about future inflation underpinned sentiment.

The official China Securities Journal reported that nine securities mutual funds, tracking China's stock indices, are being launched in September, pumping 50 billion yuan ($7.3 billion) into the market.

"It is good for more funds being launched to inject fresh funds into the market and offset more share supply," said Chen Jinren, senior analyst at Huatai Securities in Nanjing.

"But the index may still face resistance at the psychologically important 3,000-point level."

The average forecast price/earning (PE) ratio of shares listed on the Shanghai and Shenzhen stock exchanges now stand at around 25 times, still high compared with Hong Kong's 15 times, but much more reasonable after a 22-percent market slump in August. ($1 = 6.83 yuan)