Shanghai shares extend losses and end below 3,500 points

Shanghai stocks extended losses today and closed below 3,500 points with a mixed picture of heavyweights and financial sector declining while retail shares rebounded.

The Shanghai Composite Index closed down for the second day, losing 0.99 percent to 3,488 points.

Brokerages fell amid a relatively weak trading sentiment as the Chinese New Year holiday approached. GF Securities fell 2.36 percent to 19.05 yuan and China Merchant Securities lost 2.62 percent to 19.36 yuan. 

Property developers also declined, with Gemdale Corporation sinking 5.88 percent and Poly Real Estate Group shedding 2.71 percent to 16.52 yuan.

Steel makers retreated, with Anyang Iron & Steel Co falling 2.45 percent to 5.18 yuan and Nanjing Iron & Steel Co losing 3.27 percent to 5.32 yuan.

On the other hand, retail shares rose after Dalian Wanda Group said a consortium of investors led by technology giant Tencent Holdings was set to invest in its commercial property arm.

Retailers are embracing partners with strong technological and digital capability to help them restructure business and better target consumers to raise operation efficiency.

Both Shanghai Join Buy Co Ltd and Tianjin Quanyechang Group Co surged by the daily limit of 10 percent. Ningbo Shanshan Co added 1.51 percent and Suning Commerce Group Co was up 0.60 percent.