Financials lead slide in markets


China stocks performed weaker yesterday, led by declines in financial shares.

The benchmark Shanghai Composite Index fell 0.81 percent to 3,416.6 points, while the smaller Shenzhen Component Index dipped 0.38 percent to 13,973.48 points.

The STAR 50 Index edged up 0.09 percent to 1,406.19 points, and the ChiNext Composite Index closed 0.16 percent lower at 2,726.48 points.

Turnover on the two major bourses totalled 769 billion yuan (US$117.63 billion), up from 748.8 billion yuan in the previous session. Volume on the Shanghai market was 7.4 billion yuan higher at 336.8 billion yuan.

Capital flowed out of the Chinese mainland, posting a net outflow of 1.16 million yuan via the Stock Connect schemes. Shanghai saw a net influx of 865 million yuan while Shenzhen had a net outflow of 2.03 billion yuan.

Banks led yesterday’s falls, with the Bank of Zhengzhou, Bank of Ningbo and Changshu Bank all losing over 3 percent.

Bio-tech shares were also among the big losers. Walvax Biotechnology Co, listed on the ChiNext, plunged the daily limit of 20 percent. Last week, its proposed selling stakes in its unit developing pneumonia and HPV vaccines at a low price.