Investors sell to lock in profits

Shanghai stocks tumbled on Wednesday, led by declines of telecommunication and electronics firms.

The Shanghai Composite Index lost 1 percent to close at 2,955.43 points.

Investors chose to sell their shares to lock in earlier profits. Wanlian Securities said in a report that for the A-share market the lack of fresh news on policy easing also curbed investor sentiment in the short-term.

Wanlian Securities wrote in the report that the recent raft of weak economic data would be a major drag on further gains, as the stabilizing of the economy should serve as the foundation for any extended market rally, as Reuters reported.

Shenzhen Goodix Technology Co Ltd dropped 5.8 percent to 212 yuan (US$29.76) and Tederic Machinery Co Ltd fell 6.11 percent to 10.3 yuan.