City stocks extend losses as trade shrinks

Shanghai stocks extended losses on Tuesday, with total trading volume shrinking.

The benchmark Shanghai Composite Index fell by 0.19 percent to 3,410.18 points, while the smaller Shenzhen Component Index remained generally flat at 13,973.89 points.

The STAR 50 Index dropped 0.53 percent to 1,398.73 points. The ChiNext Composite Index, however, closed 0.73 percent higher at 2,746.28 points.

Total trading volume on the two bourses shrank to 701.7 billion yuan (US$107.51 billion) compared with 769 billion yuan in the previous session. Among them the Shanghai Stock Exchange posted a turnover of 304.6 billion yuan, higher than that on Monday. 

Overseas capital flowed into the Chinese mainland, with a net influx of 6.68 billion yuan via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong, among which the Shanghai market posted a net inflow of 4.03 billion yuan.

In terms of industries, the liquor sector rebounded strongly, as the stock price of Kweichow Moutai further rose to a new record, closing 2.07 percent higher at 1,850 yuan. Shanghai Jinfeng Wine Co, Qinghai Huzhu Barley Wine Co and Hebei Hengshui Laobaigan Liquor Co all surged by the daily limit of 10 percent.

Auto shares were also among the big gainers, with Anhui Jianghuai Automobile Group soaring by 10 percent. 

Insurance companies, however, extended losses. Ping An Insurance dipped 2.58 percent.

Airports, office supply companies, home appliance shares also posted declines, while soft drink firms and the precious metal sector performed well.