New policies dampen decline
Chinese stocks fell on Wednesday amid unstable investor sentiment while automakers firmed up after a series of new measures to support car purchases.
The benchmark Shanghai Composite Index dipped 0.29 percent to 2,893.76 points and turnover was 201.8 billion yuan (US$28 billion). A total of 726 shares dropped while 668 closed higher and 84 were unchanged.
The State Council announced measures to support consumption, including using new technology to promote the circulation of products, improving commercial streets and more chain convenience stores. It may also lift restrictions on vehicle purchases in some regions.
Dongfeng Automobile Co jumped 5.02 percent to 5.02 yuan while both Shenyang Jinbei Automotive Co Ltd and Tianjin Faw Xiali Automobile Co surged by the daily limit of 10 percent.
Liquor makers were also a bright spot within the consumer goods sector. Wuliangye Yibin Co continued strong momentum after Citic Securities put a target price of 156 yuan citing strong competitive edge. Wuliangye, China’s second most valuable distiller, went up 1.16 percent to 133.92 yuan and Kweichow Moutai remained the most valuable. Jiangsu Yanghe Brewery Joint Stock Co advanced 3.77 percent to 110.57 yuan.
Financial shares were mixed. Industrial Bank Co sank 4.93 percent to 17.37 yuan and China Merchants Bank lowered 0.72 percent to 34.50 yuan. Everbright Bank edged up 0.55 percent.
Metal producers retreated from earlier gains. China Gold Mining Co was down 1.11 percent to 9.76 yuan and Jiangxi Copper Co slipped 0.90 percent while Zijin Mining Group Co slid 1.36 percent to 3.64 yuan.