Mainland markets end lower, topical shares keep losses in check

Stock markets on the Chinese mainland closed south of par Wednesday as property development and financial stocks tumbled.

The Shanghai Composite Index fell 12.29 points, or 0.61 percent, to close at 1,994.27; while the Shenzhen Component Index shed 65.10 points, or 0.84 percent, to finish at 7,703.74.

Combined turnover at the two exchanges climbed to 178.5 billion yuan ($29.10 billion), up slightly from Tuesday's 172.5 billion yuan.

Both indices opened lower and drifted mostly downward during the morning session. Small-cap equities in the media and Internet sectors narrowed the early losses later in the afternoon, yet signs of sputtering in China's service sector dialed up the pressure and kept the benchmarks below even throughout the trading day.

China's official non-manufacturing purchasing managers' index (PMI) for June eased to 53.9, down from a final reading of 54.3 in May, according to information offered Wednesday by the National Bureau of Statistics. Analysts and market participants alike were largely inclined to view the sliding service PMI as yet another indicator of China's slumping economy.

Several of the market's most heavily weighted sectors contracted thanks to dimming macro outlooks. Less capitalized shares found room to advance once again though as investors lost interest in big firms with broad exposure to conditions in the domestic economy.

In the banking sector, Industrial and Commercial Bank of China Ltd gave up 1.99 percent to 3.94 yuan. Industrial Bank Co surrendered 1.42 percent to 9.01 yuan.

Listed property developers crumbled as well. China Vanke Co sank 2.67 percent to 9.46 yuan. Poly Real Estate Group Co ditched 2.03 percent to 9.67 yuan.

Meanwhile, makers of mobile phone games were among the day's highest scorers. Telling Telecommunication Holding Co and Datang Telecom Technology Co both climbed by the 10-percent daily limit to close at 6.22 yuan and 14.01 yuan respectively.