Markets down as probe news hits medical sectors

Stock markets on the Chinese mainland ended with losses Thursday as news of expanding probes into the drug and medical service industries sent related shares tumbling.

The Shanghai Composite Index shed 18.26 points, or 0.87 percent, to 2,081.88; while the Shenzhen Component Index gave up 107.94 points, or 1.29 percent, to 8,228.87.

Combined turnover of the two exchanges eased to 189.3 billion yuan ($30.95 billion), down from Wednesday's 211.9 billion yuan.

As the Xinhua News Agency reported Wednesday, the State Administration for Industry and Commerce is geared up to launch a three-month investigation into bribery, corruption and anticompetitive practices in China's pharmaceutical and medical industries. This latest round of scrutiny comes after allegations surfaced last month that British drugmaker GlaxoSmithKline had bribed doctors and health officials in China.

Analysts say the intensifying crackdown has undermined confidence in healthcare related equities and is likely to push down prices for drugs and medical services. Jiangsu Hengrui Medicine Co sank 6.03 percent to 32.73 yuan. Tianjin Zhongxin Pharmaceutical Group Corp surrendered 7.19 percent to 13.30 yuan.

Automobile, coal and building material stocks also performed poorly, pulling the Shanghai Composite and Shenzhen Component into negative territory as afternoon trading drew to a close.

Among listed carmakers, Faw Car Co slid 0.61 percent to 14.65 yuan. SAIC Motor Corp reversed 2.88 percent to 13.50 yuan.

On the positive side, transportation and logistics shares scored big after local media reports said the central government would speed up construction of rail projects in central and western China. Daqin Railway Co jumped 7.63 percent to 6.77 yuan. Dazhong Transportation (Group) Co climbed 2.36 percent to 6.07 yuan. Fujian Xiamen Xiangyu Co, a provider of supply chain management services, shot up 6.44 percent to 4.46 yuan.