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China shares shed early gains, banking sector stays sluggish

Tuesday, 24 Dec 2013 | 2:06 AM ET

HONG KONG, Dec 24 (Reuters) - China shares surrendered early gains in weak Tuesday trade, with some mid-sized lenders still weak despite the central bank's first liquidity injection through normal channels in three weeks.

The CSI300 of the leading Shanghai and Shenzhen A-share listings, which earlier rose by as much as 1.2 percent, ended up 0.2 percent at 2,288.3 points. The Shanghai Composite Index also inched up 0.2 percent.

Shanghai volumes were about 33 percent below its 20-day moving average.

On Tuesday morning, the People's Bank of China's first liquidity injection through normal channels in three weeks spawned early gains for the banking sector, but they dissipated in the afternoon, suggesting investors remain jittery about the tight interbank market.

Mainland China markets stay open throughout this week.

(Reporting by Clement Tan; Editing by Richard Borsuk)