CHINA’S stock market posted its biggest one-day drop in more than a month yesterday, with a tumble in small-cap shares offsetting gains in infrastructure and banking stocks.

    A slew of weak economic data this week have also soured investor sentiment. China yesterday reported economic growth slowed to a six-year low. The economy grew 7 percent in the January-March quarter from a year earlier — the worst showing since the depths of the global financial crisis, data showed, highlighting the need for further monetary easing.

    The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 1.3 percent to 4,380.5, while the Shanghai Composite Index dropped 1.2 percent to 4,084.16 points. The Shenzhen Composite Index tumbled 3.68 percent to 2,101.65.

    “Valuation of China’s blue chips is still reasonable... but most of China’s small-cap companies are expensive,” said Huang Ruiqing, fund manager at Bosera Asset Management Co.

    Shenzhen’s start-up board ChiNext and the SME board for small and medium-sized enterprises tumbled 4.7 percent and 3.7 percent, respectively, amid concerns over their lofty valuations.

    But banks, infrastructure and transportation stocks jumped, as investors are betting such companies would benefit from China’s ambitious “Modern Silk Road” program that will see huge infrastructure investment around Asia.

    (SD-Agencies)