China's stock markets end lower despite regulator's new rules

China’s stock markets were traded in the negative territory on Wednesday, with the benchmark Shanghai Composite Index shedding 0.68 percent, dragged by names related to free trade port, brokers and online tourism among others.

The A-share market opened flat and posted strong performance during the morning trade, led by shares in non-ferrous metals and lithium battery makers. But the gains were wiped out in the afternoon trading, as risk aversion sentiment began to cloud the investors.

The Shanghai Composite Index continued to suffer losses for a third straight day within the week, finishing the day down by 0.68 percent or 18.02 points at 2,641.34 and the smaller Shenzhen Component Index fell by 0.50 percent to finish at 7,752.04 points.

The Nasdaq-style ChiNext enterprise board declined by 0.25 percent to end the day at 1,345.77, although it recorded a nearly 1.5 percent rise during the trading hours.

TF Securities, a Wuhan-headquartered national broker, saw its shares declined by 4.04 percent to close at 7.36 yuan per share.

On the evening of November 6, the China Securities Regulatory Commission issued new rules to further improve the suspension and resumption system for listed companies from the nation’s stock markets. The announcement specified suspension period, information disclosure and supporting mechanism to curb long-time arbitrary and willful suspensions.

Guangzhou Wanlong Securities said that they believe more rebound will come as regulators are rolling out more favorable policies to lift the investors’ sentiment.