Chinese shares fall on profit-taking

Chinese shares slid on Thursday although HSBC announced its flash reading of China's Purchasing Managers' Index (PMI) in January hit a two-year high.

The benchmark Shanghai Composite Index declined 18.31 points, or 0.79 percent, to finish at 2,302.6 points, while the Shenzhen Component Index moved down 1.09 percent, or 104.23 points, to 9,444.08.

However, combined turnover on the two bourses jumped to 253.95 billion yuan (40.45 billion U.S. dollars) from 188.73 billion yuan the previous trading day, indicating investors began to take profits after the recent sharp rally.

Losers outnumbered gainers by 834 to 121 in Shanghai and by 1,352 to 160 in Shenzhen.

B shares on both bourses reversed the gaining streak, falling 2.44 percent in Shanghai and 0.2 percent in Shenzhen.

HSBC on Thursday projected the flash reading of PMI for China's manufacturing sector to climb to 51.9 percent in January, marking a two-year high, according to the indices released by the bank.

Environmental protection shares led the declines. Guangzhou Devotion Thermal Technology Co. slipped 5.96 percent to finish at 14.82 yuan per share, while Jiangsu Welle Environmental Co. fell 6.26 percent to close at 20.23 yuan.

Aircraft builders outperformed the main board. China Spacesat Co. went up 1.63 percent to finish at 15.55 yuan per share, while Jiangxi Hongdu Aviation Industry Co. increased 2.22 percent to close at 16.09 yuan.