China Shares Soft, Economic Recovery Questioned

China stocks weakened on Wednesday despite strength in property shares, with thin trading indicating investors' reluctance to participate days ahead of the week-long National Day holiday that starts on Oct. 1.

China's blue-chip CSI300 index fell 0.3 percent, to 3,230.89, while the Shanghai Composite Index also lost 0.3 percent, to 2,987.86 points.

Recent economic data has shown signs of recovery in China's economy. Industrial sector profits jumped 20 percent in August, the best showing in three years, while a Reuters poll showed manufacturing sector activity likely expanded modestly for a second straight month in September.

But many investors remain skeptical about the sustainability of a recovery that they believe has depended on government stimulus.

Also, many investors were not inclined to make big bets before the holiday. China's stock market will be closed all next week.

Most sectors lost ground on Wednesday but property shares were strong, as investors bet developers will benefit from the recent surge in home prices in major cities despite fresh curbs by local governments.

(Reporting by Samuel Shen and John Ruwitch; Editing by Richard Borsuk)