China shares drop on low investor confidence

BEIJING, Nov. 20 (Xinhua) -- Chinese stocks closed lower on Tuesday amid slumping investor confidence after a key index hit a record low in the previous trading.

The benchmark Shanghai Composite Index dropped 8.06 points, or 0.4 percent, to 2,008.92. The Shenzhen Component Index closed at 8,052.79, down 7.76 points, or 0.1 percent.

Combined turnover on both bourses shrank to 67.05 billion yuan (10.65 billion U.S. dollars) from 69.83 billion yuan against the previous trading day.

Losers outnumbered gainers by 636 to 274 in Shanghai and by 862 to 567 in Shenzhen.

The Shanghai Composite Index hit 1,995.72 points during Monday's trading, a record low since February 2009. It closed at 2,016.98.

Analysts said the weak performance had eroded investor confidence and prompted them to take a wait-and-see attitude before any signs of a bullish trend.

Market heavyweights were mostly weak on Tuesday, led by commercial banks, with the sub-index for the sector dropping 1.32 percent.

Industrial and Commercial Bank of China, the country's largest commercial bank, dropped 0.52 percent to 3.83 yuan per share, while the Construction Bank of China dropped 1.19 percent to 4.16 yuan.

Sinopec, China's largest oil refiner, dropped 0.66 percent to 6.02 yuan per share. China Shenhua, the largest coal miner in China, dipped 1.7 percent to 21.37 yuan.

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