Shares close down on decline by nonferrous metal companies

Shanghai stocks fell today led by decline of nonferrous metal companies after their recent gains prompted China's largest aluminum producer to warn investors of market risks.

The Shanghai Composite Index fell 0.42 percent to end at 3,261.75 points.

Aluminum Corporation of China Ltd, also known as Chalco, shed 4.32 percent to finish at 7.31 yuan and Jiangxi Copper Co Ltd dropped 4.3 percent to close at 19.61 yuan.

In a statement posted on the website of the Shanghai Stock Exchange today, Chalco warned investors to be aware of market volatility and secondary market trading risks.

Iron and steel companies and coal firms were among the biggest decliners, with Angang Steel Company Limited losing 6.20 percent to 7.57 yuan, while Shanxi Coking Co Ltd lost 5.19 percent to 9.14 yuan.

"In the past several months steel shares have risen, so an appropriate correction is healthy and reasonable," said Huang Xiaobin, analyst at Huatai Securities in Shenzhen quoted by Fox Business.

Insurance shares also fell, with Ping An Insurance (Group) Co of China losing 2.52 percent to close at 50.75 yuan.