China stocks slip back from earlier rally

Huang Yixuan
Shares related to rich communication services (RCS) continued to perform strongly on Wednesday though all markets suffered a slight retreat in general.
Huang Yixuan

China stocks retreated slightly from an earlier rally, while shares related to rich communication services (RCS) continued to perform strongly.

The benchmark Shanghai Composite Index dipped 0.19 percent to 2,815.37 points, while the smaller Shenzhen Component Index edged down 0.41 percent to 10,386.55 points.

The ChiNext Composite Index, meanwhile, slipped 0.25 percent to 1,964.76 points and the blue chip CSI300 Index closed 0.47 percent lower at 3,780.34 points.

Trading volume on the two major bourses shrank to 674.1 billion yuan (US$95.4 billion) compared with 731.2 billion yuan in the previous session. Turnover on the Shanghai Stocks Exchange was down 33.4 billion yuan to 253.2 billion yuan.

The mainland markets saw a net outflow of 3.45 billion yuan via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

Despite the overall retreat, nearly 100 listed companies surged by the daily limit of 10 percent.

The agriculture, forestry, animal husbandry and fishery sector, the biggest gainer in the previous session, led the fall on Wednesday, with Jiangsu Lihua Animal Husbandry Co and Baiyang Investment Group both lost over 8 percent.

Food and beverage shares also pulled back in general. CSPC Innovation Pharmaceutical Co plunged by the daily cap of 10 percent, while Shandong Huifa Foodstuff Co fell over 6 percent.

Insurance companies, the medical industry and brokerages also posted losses. 

Stocks related to RCS, however, maintained their strong performance, with Beijing Ultrapower Software Co, ZJBC Information Technology Co and Richinfo Technology Co all soaring by the maximum 10 percent. Shares related to online tourism also jumped in general.

On the STAR Market, 51 of the 94 listed firms rose, one remained flat and the others declined. The biggest gainer, Beijing Worldia Diamond Tools Co, ended 8.03 percent higher, while Beijing Kingsoft Office Software lost the most, by 5.04 percent.

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