BEIJING (XFN-ASIA) - China B-shares closed lower following steep losses on Wall Street and a continued retreat in telecom stocks after Beijing issued licenses for 3G mobile phone services, dealers said.
Shanghai-based property developers rose sharply after a report that a Disney theme park will be operational in the city by 2013.
The Shanghai B-share Index was down 0.99 point or 0.84 pct at 117.00 and the Shenzhen B-share Index fell 6.16 points or 2.14 pct to 280.95.
'A weak Wall Street triggered further profit-taking, even though investors remained active,' said a Shanghai-based analyst who asked not be identified.
'The market was also tracking the fall in A-shares as banks were under pressure after news of more share sales by foreign strategic investors,' he added.
In Shanghai, telecom equipment makers Eastern Communications (SHB 900941; SHA 600776) and Shanghai Potevio (SHB 900930; SHA 600680) lost 4.48 pct and 3.19 pct, respectively, to 0.256 and 0.364 usd.
Shanghai Jinjiang International Industrial Investment (SHB 900914; SHA 600650) shed 4.11 pct to 0.676 usd after jumping 6.98 pct yesterday, while retailer Shanghai Friendship (SHB 900923; SHA 600827) was down 3.68 pct at 0.760 usd.
Property firm Shanghai Waigaoqiao Free Trade Zone Development (SHB 900912; SHA 600648) jumped 7.96 pct to 0.461 usd, while Shanghai Lujiazui Finance & Trade Zone Development (SHB 900932; SHA 600663) gained 2.56 pct to 0.963.
The official Shanghai Securities News cited sources as saying that Lujiazui and Waigaoqiao are expected to participate in the Disney park project.
Inner Mongolia Yitai Coal (SHB 900948) added 1.77 pct to 2.699 usd.
In Shenzhen, property firms led the declines, with Hainan Pearl River Holdings (SZB 200505; SZA 000505) falling 4.64 pct to 2.26 hkd.
China Vanke (SZB 200002; SZA 000002), the country's top property developer by market value, slid 5.08 pct to 6.35 hkd after gaining 1.98 pct yesterday.
Nanjing Postel Telecommunications (SZB 200468) lost 4.21 pct to 1.82 hkd, extending a 1.55 pct fall in the previous session.
The FTSE/Xinhua China B 35 Index lost 59.93 points or 1.43 pct to 4,132.13.
The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed down 45.83 points or 2.38 pct at 1,878.18.
(1 usd = 6.8 yuan; 7.8 hkd)
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