SHANGHAI (XFN-ASIA) - China A-shares closed mixed in thin turnover with the Shanghai market supported by an extended rise in financial stocks, dealers said.
Property stocks fell after the central bank called on commercial banks to tighten lending to property developers.
The Shanghai A-share Index was up 8.33 points or 0.34 pct at 2,467.39, while the Shenzhen A-share Index fell 0.80 points or 0.12 pct to 672.74.
The benchmark Shanghai Composite Index closed up 8.0 points or 0.34 pct at 2,350.14, down 55.3 pct so far this year.
Turnover fell to 28.60 bln yuan, close to the 21-month low, from 32.57 bln yesterday.
'Financial stocks led a rebound in early trade, but the overall gains were limited because of the tiny turnover,' said Zhang Gang, an analyst with Southwest Securities.
'Investors who were carrying heavy losses were unwilling to cut positions, while others stayed on the sidelines, waiting for clearer signs of a rebound,' Zhang said.
State media reported that the China Securities Regulatory Commission is currently working with the State Administration of Taxation on a draft that will lead to the cancellation of the dividend tax.
Announcements of measures intended to prop up the market did give a boost to sentiment, but a further rise apparently requires more catalysts, analysts said.
Cao Xuefeng, an analyst with West China Securities, noted that once the dividend tax measure is passed, it will help reassure investors, 'although the real benefits brought by the new policy will be small.'
On Friday, the securities regulator also announced draft rules requiring a 30 pct dividend payout average over three years for listed companies.
Yesterday, the CSRC simplified procedures for major shareholders to raise their stakes.
'It will be easier for shareholders to increase stakes, but whether and when they will buy shares remains a question,' Cao said.
PetroChina (SHA 601857; HK 0857) was down 0.69 pct at 12.97 yuan after it reported that first-half net profit fell 34.5 pct year-on-year to 53.62 bln yuan under international accounting standards, due to refining losses and higher windfall profit taxes.
China Pacific Insurance (Group) (SHA 601601) gained 2.73 pct to 18.81 yuan and Ping An Insurance (Group) Co of China (SHA 601318; HK 2318) added 1.97 pct to 45.61 yuan.
CITIC Securities (SHA 600030) rose 3.76 pct to 19.59 yuan and Haitong Securities (SHA 600837) was up 0.68 pct at 16.29 yuan.
Industrial and Commercial Bank of China (ICBC) (SHA 601398; HK 1398) gained 1.04 pct to 4.87 yuan.
China Vanke (SZA 000002; SZB 200002), the top property developer by market value, fell 1.03 pct to 6.73 yuan and China Merchants Property Development (SZA 000024; SZB 200024) lost 2.70 pct to 12.96 yuan.
The People's Bank of China said yesterday in a circular released jointly with the banking regulator that loans for land banking in which the acquired property is used as collateral should not run for more than two years.
It also restated its curbs on bank loans being used directly for land purchases by developers.
Kweichow Moutai (SHA 600519), China's top liquor maker, rose 1.0 pct to 136.50 yuan after first half net profit rose 163.56 pct year-on-year to 2.24 bln yuan.
Huaneng Power International Inc (SHA 600011; HK 0902) advanced 1.35 pct to 5.99 yuan, although it posted a net loss of 470.33 mln yuan, against a profit of 2.96 bln yuan a year earlier.
GD Power Development (SHA 600795) was down 0.60 pct at 5.01 yuan after first-half net profit fell 44.36 pct from a year earlier to 328.52 mln yuan.
Sinopec Shanghai Petrochemical (SHA 600688; HK 0338; NYSE SHI) was flat at 5.07 yuan. It booked a net loss of 372.77 mln yuan in the first half under Chinese accounting standards, against a profit of 1.76 bln a year earlier. It also warned of a possible bigger loss in the first nine months.
Daqin Railway (SHA 601006) slid 1.56 pct to 11.97 yuan. It announced first half net profit growth of 25.78 pct from a year earlier to 3.72 bln yuan on increased rail cargo volume for coal.
Shanghai Metersbonwe Fashion & Accessories (SZA 002269 ) jumped 36.13 pct to 26.90 yuan on its debut in Shenzhen, against an IPO price of 19.76 yuan.
The FTSE/Xinhua China A 50 Index was up 61.04 points or 0.69 pct at 8,925.25 and the FTSE/Xinhua China A 200 Index rose 29.22 points or 0.45 pct to 6,562.68 .
(1 usd = 6.85 yuan)
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