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China shares mixed on bank share sale concerns

China shares mixed on bank share sale concerns

Chinese shares ended mixed Friday amid investor concern plans by banks to sell new shares might dilute the market, with the country's main index finishing January down 8.8 percent.
The benchmark Shanghai Composite Index slipped 4.85 points, or 0.2 percent, to close at 2,989.29, while the Shenzhen Composite Index for China's smaller second exchange added 0.6 percent to 1,120.45.
Investors are concerned by a 22 billion yuan ($3.2 billion) planned share sale by midsize lender China Merchants Bank Co. due to be reviewed by regulators next week and possible sales by other banks.
"The market saw the necessity for a technical correction, but more share sale plans kept investors worried," said Wen Lijun, an analyst for Nanjing Securities.
Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, and Bank of China Ltd. both shed 0.2 percent _ ICBC to 4.85 yuan, and BOC to 4.1 yuan.
Other heavyweights fell back after a short rally Thursday. China Petroleum and Chemical Corp., also known as Sinopec, and developer China Vanke Co. both lost 0.7 percent _ Sinopec to 11.42 yuan, and Vanke to 9.34 yuan.
Construction-related shares gained after a commerce official said Friday the government might announce steps to boost rural sales of building materials.
Jiangxi Wannianqing Cement Co. surged by the daily maximum of 10 percent to 8.17 yuan and Hebei Taihang Cement Co. advanced 5.1 percent to 10.11 yuan.
In currency markets, the yuan strengthened to 6.8267 to the U.S. dollar, up from Thursday's close of 6.8269.


Updated : 2021-04-17 14:30 GMT+08:00