Stocks fall as investors lock in profits

Shanghai stocks fell on Wednesday as investors locked in profits from earlier gains.

The benchmark Shanghai Composite Index lost 0.51 percent to close at 2,883.74 points. The smaller Shenzhen index was down 0.94 percent to 10,948.48 points while the blue chip CSI300 Index closed 0.63 percent lower at 3,935.22 points.

The startup board ChiNext Composite index was weaker by 1.21 percent to 2,118.12 points.

Turnover on the two major bourses added up to 686.7 billion yuan (US$96.6 billion), an increase of 45.2 billion yuan compared with 641.5 billion yuan the previous trading day. Turnover on the Shanghai Stock Exchange was 269.2 billion yuan, an increase of 12.9 billion yuan from the previous trading day’s 256.3 billion yuan.

In the A-share market, semiconductor, telecommunication and consumer shares were among the biggest decliners.

Cautious investors locked in profits from sectors that surged on Tuesday. They held back waiting to hear the central government’s economic plans to be revealed during the country’s annual political meetings. China's top political advisory body holds its annual session from Thursday to May 27. 

Yonyou Network Technology Co Ltd declined 5.63 percent to 36.69 yuan (US$5.16) and Yonghui Superstores Co Ltd fell 4.19 percent to 9.38 yuan.