Chinese shares see new record turnover despite major indices drop

Two stock bourses on the Chinese mainland saw a fresh record turnover on Thursday despite major indices dropping on profit taking.

The two bourses based in Shanghai and Shenzhen recorded a combined turnover of 389.397 billion yuan (50.6 billion U.S. dollars).

The benchmark Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, dropped 0.54 percent to 4,151.13 points, 22.58 points lower than the previous close.

The smaller Shenzhen Component Index closed at 12,515.15 points, down 108.97 points.

After hitting the daily peak, the markets experienced volatile vibrations following China's securities watchdog's new warning of stock market risks, Chinese banks' intensified measures to block illegal capital from entering the market and former U.S. Federal Reserve Chairman Alan Greenspan's concerns about an eventual sharp decline in China's stock market.

The USD-denominated B-shares index on the Shanghai market dropped for the third straight day and the Shenzhen market once saw all the B-shares dropping to the daily limit of 10 percent.

Shares of securities firms, chemical fibre makers and steel companies led the rally on Thursday. The agriculture and logistics sectors continued to maintain steady growth.

Property stocks which had taken the lead on Wednesday saw sharp fluctuations and the Special Treatment (ST) stocks which had been strong for several days began dropping.

The close-end fund got considerable turnover.

Major bank shares remained steady while such blue chips as Sinopec, Bao Steel and China Unicom were all down.

Analysts with the Shanghai-based Shenyin&Wanguo Securities anticipated the market would restore upward trend.

Analyst Li Hongyan with Shandong Qilu Securities Brokerage Co., Ltd. shared the same opinion and suggested investors to buy stocks at lower points.

Source: Xinhua