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China shares mixed amid recovery uncertainty

China shares mixed amid recovery uncertainty

Chinese shares ended mixed Thursday amid investor uncertainty about the speed and strength of China's economic recovery following the government's announcement that it will try to cut overcapacity in some industries.
The benchmark Shanghai Composite Index dropped by 21.2 points, or 0.7 percent, to close at 2,946.4. The Shenzhen Composite Index for China's smaller second exchange added 0.2 percent to 1005.14.
Investors were uncertain about the market's direction following recent price swings and the government's announcement Wednesday that it would cut overcapacity in some industries including steel and cement.
"Investors turned to small and defensive shares, as the market went directionless," said Zhang Linchang, an analyst for Guotai Securities in Shanghai.
The move to rein in excessive investment could squeeze profits in some industries in the short-term but should have longer-term benefits, Zhang said.
Baoshan Iron and Steel Co., China's biggest steelmaker, edged up 0.4 percent to 7.18 yuan, while Beijing Shougang Co. jumped 1 percent to 5.27 yuan.
Jiangxi Copper Ltd., the country's second-largest metal producer, lost 3.1 percent to 37.52 yuan, while Aluminum Corp. of China shed 3 percent to 14.61 yuan.
Oil heavyweights fell after a rumored increase in government-set fuel prices failed to materialize. PetroChina Ltd., Asia's biggest oil producer, waned 2.7 percent to 14 yuan, while China Petroleum & Chemical Corp. gave up 2.8 percent to 13.06 yuan.
Shandong Xinhua Pharmaceutical Co. rose 2.7 percent to 6.75 yuan, while Zhejiang Medicine Co. gained 1.8 percent to 32.33 yuan.
In currency markets, the yuan weakened to 6.8319 to the U.S. dollar, down from Wednesday's close of 6.8285.


Updated : 2021-07-30 17:52 GMT+08:00