Slow day for Shanghai stocks
Shanghai stocks closed down on Monday following sluggish performances on overseas markets. Gold makers and health-care shares bucked the trend.
The benchmark Shanghai Composite Index fell 1.17 percent to 2,863.57 points and turnover was 191 billion yuan (US$27 billion).
Haitong Securities wrote in a research note that the short-term market performance might be unstable and high-tech companies would outperform the overall market.
Vice Premier Liu He made a speech at the Smart China Expo in Chongqing on Monday and reiterated that China has the policies and tools to maintain economic fundamentals and to ensure the sound momentum of economic development.
Huadong Medicine Co edged up 3.21 percent to 30.91 yuan and North China Pharmaceutical Co surged the daily limit of 10 percent to 7.16 yuan.
Metal producers went up against the trend. Shandong Gold Mining Co rose 4.7 percent to 38.10 and Zijin Mining Group Co rose 1.65 percent.
STAR tech board firms also increased despite brief drop in the afternoon session following China Securities Regulatory Commission's new rules of asset restructuring, which would allow easier process for parent companies to spin off high-tech affiliate to list on the STAR Market, which is also expected to improve the efficiency of the merge and acquisition of STAR board companies.
Only three STAR board shares closed lower and best performers included Micro-tech (Nanjing) Co Ltd which shot up 11.69 percent and Fujian Forecam Optics Co which advanced 7.31 percent.
Brokerages were also weak although a number of leading players posted their improved results in the first half. Guoyuan Securities lost 2.4 percent and Sinolink Securities went down 1.24 percent.