Markets

China's stocks close down on profit taking - Thursday

(Xinhua)
Updated: 2010-06-03 16:15

BEIJING: Chinese shares fell Thursday, as profit taking in the late afternoon trading dragged down earlier gains led by software and healthcare shares.

The Shanghai Composite Index closed at 2,552.66 points, down 18.77points, or 0.73 percent from the previous close.

The Shenzhen Component Index ended at 10,118.04 points, down 70.10 points, or 0.69 percent, from the previous close.

Total turnover expanded to 152.05 billion yuan ($22.26 billion) from 126.1 billion yuan on the previous trading day.

Losers outnumbered gainers by 654 to 210 in Shanghai and 617 to 316 in Shenzhen.

The Shanghai Composite Index opened higher after a rise on Wall Street and ended the morning session up 0.62 percent. The index continued to shoot up in the early afternoon but then was dragged down by profit taking.

Analysts said the market sentiment was still low, and banking and property shares remained weak.

The early gains were mainly backed by software stocks after Li Yizhong, Minister of Industry and Information Technology, said in a speech on the ministry's web site Thursday that China would promote the nation's software industry development.

Related readings:  Chinese stocks close slightly higher - Wednesday  China stocks down Tuesday on slowing manufacturing growth  'Correction' in China stocks nearing its end

The nation will seek to boost electronic commerce, networking services, games and digital entertainment among other software businesses, Li said.

China National Software and Service Co rose by the daily limit of 10 percent to 19.43 yuan. Inspur Co rallied 9.74 percent to 11.94 yuan.

Healthcare shares also help led the early gains after the China Securities Journal reported Thursday that a draft plan for developing the bio-technology industry, formulated by the National Development and Reform Commission, was expected to be submitted to the State Council for approval this month.

Boosted by the news, Guilin Layn Natural Ingredients Corp. rose by the daily limit of 10 percent to 20.96 yuan. Anhui Anke Biotechnology Co gained 8.13 percent to 22.34 yuan.