China Shares End Down on Concerns Over Domestic Economic ... - Wall Street Journal

        By Esther Fung      

SHANGHAI--China's shares ended lower Wednesday for the second consecutive session on lingering concerns over the pace of growth in the domestic economy.

The benchmark Shanghai Composite Index, which tracks both A and B shares, ended down 0.3%, or 7.91 points, at 2292.88. The Shenzhen Composite Index fell 0.2%, or 1.77 points, to 956.23.

Trading was thin as investors decide to remain on the sidelines ahead of a long weekend. Markets will be closed Friday due to the Dragon Boat Festival.

Analysts said that the index is likely to consolidate between 2280 and 2350 next week, with investors content to lie low for now while they await fresh cues from policymakers and June economic data.

"There are concerns about how much the domestic economy is able to pick up after recent easing measures. There was the interest rate cut, but authorities also reiterated that property restrictions must be maintained," said Zhang Yanbin, an analyst from Zheshang Securities.

China's central bank cut interest rates by a quarter of a percentage point earlier this month, its first cut since December 2008.

Property developers were down on diminishing hopes for further easing in the property market. China Vanke, the nation's largest property developer by sales, declined 0.3% to CNY9.03, and Poly Real Estate Group fell 1.6% to CNY11.54.

"There are still some uncertainties about the economy, with the latest central bank survey showing that people are still concerned about prices (property and consumer goods," said Zhou Xu, an analyst at Nanjing Securities. "Trading is at a stalemate with the lack of catalysts to boost the market."

Some mining firms were down after a white paper released by the State Council showed that the government will introduce stricter standards for rare-earth mining.

Xiamen Tungsten slid 1.8% to CNY46.38, and Shandong Gold-Mining fell 1.0% to CNY35.69.

However, other miners gained on hopes for industry consolidation in the rare-earth mining sector. Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech Co. gained 0.9% to CNY43.98, and Minmetals Development Co. rose 0.2% to CNY24.16.

The July index futures contract, the most actively traded of the four index futures contracts traded in China, ended down 0.2% at 2549.0.

The futures are referenced to the CSI-300, an index of 300 Shanghai- and Shenzhen-listed yuan-denominated A shares. The CSI-300 ended 0.2% lower at 2552.61.

Write to Esther Fung at esther.fung@dowjones.com