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      Chinese shares close lower amid gloomy economic prospects

      2013-05-15 07:38 Xinhua     Web Editor: qindexing comment

      Chinese shares plunged over 1 percent on Tuesday as investors showed more caution on economic slowdown concerns.

      The benchmark Shanghai Composite Index dropped 1.11 percent, or 24.91 points, to end at 2,217.01. The Shenzhen Component Index lost 2.28 percent, or 205.20 points, to close at 8,809.09.

      Combined turnover shrank to 165.44 billion yuan (26.68 billion U.S. dollars) from 170.74 billion yuan the previous trading day.

      Due to the tempered economic growth, the central government's fiscal revenue dropped by 2.2 percent year on year to 535.7 billion yuan.

      The news that the much-anticipated resumption of initial public offerings (IPOs) may be postponed until the third quarter of the year due to weak economic recovery also disappointed Chinese firms seeking to go public.

      Liquor-making industry led Tuesday's declines, with the sub-index for the sector dropping 3.07 percent. Jiangsu Yanghe Brewery Joint-Stock Co., Ltd. lost 3.75 percent to 58.74 yuan per share. Anhui Gujing Distillery Company Limited decreased 3.73 percent to 25.03 yuan.

      The electronic information sector edged down as investors expect their profits to suffer amid the weak economic recovery. China United Network Communications Limited, fell 1.91 percent to 3.60 yuan per share. China National Software & Service Company Limited declined 3.16 percent to 11.95 yuan.

      Environment protection sectors also fell on Tuesday. Dongjiang Environmental Company Limited lost 1.88 percent to 55.75 yuan per share. Beijing SPC Environment Protection Tech Co.,Ltd edged down 3.70 percent to 27.07 yuan.

      The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, declined 1.89 percent, or 18.78 points to 976.33.

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