Shanghai benchmark dragged lower by tech declines

Shanghai stocks fell on Wednesday, led by technology sector declines.

The benchmark Shanghai Composite Index lost 0.83 percent to close at 2,987.93 points. 

Semiconductor, software and electronics manufacturing shares were among the biggest losers.

Sentiment was weak as other Asian markets fell further on Wednesday. Japan’s Topix index retreated 0.8 percent at the close and South Korea’s Kospi retreated 1.3 percent.

Chen Xiaohui, an investment adviser with Haitong Securities, said that most technology stocks are overvalued. Chen recommends that investors sell technology shares when necessary.

Veken Technology Co Ltd declined 7.67 percent to 7.7 yuan (US$1.09) and Shanghai Beite Technology Co Ltd lost 7.21 percent to 7.98 yuan.