Chinese markets close pre-holiday session mixed

Chinese stocks closed mixed on Wednesday amid less trading volumes. 

The benchmark Shanghai Composite Index lost 0.2 percent to end at 3,218.05 points. The Shenzhen Component Index edged up 0.05 percent to 12,907.45 points. The bluechip CSI300 index was down 0.1 percent to 4,587.40 points.

Most tech shares posted gains. The tech-heavy ChiNext Composite Index advanced 0.44 percent. The STAR 50 Index, which tracks the 50 biggest and most representative companies listed on the market for more than six months, surged 2.07 percent.

Turnover on the two major bourses declined to 540 billion yuan (US$79.15 billion), less than half of the usual trading volume.

Foreign investors sold 3 billion yuan in overseas assets via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

“Investors tend to hedge before holidays, which caused the decline in the market. But a sharp rebound is expected after the holiday,” said Liu Chenming, analyst at Tianfeng Securities.

Most sectors retreated, with losing shares outnumbering gainers by 1,068 to 623 in Shanghai and 1,369 to 863 in Shenzhen.

The aerospace industry led the day's gains, followed by the medical and liquor industries.

“Recent economic data showed China’s recovery is gaining momentum, and listed companies’ profits are expected to increase, which will drive up the stock market,” said Chen Guo, analyst at Essence Securities.