China A-shares close lower for second day; resource stocks slump

China A-shares closed lower for a second day, with losses widening in yesterday afternoon trade led by coal firms and metals stocks after a sharp decline in commodity prices, dealers said.

The launch of IPO subscriptions for China South Locomotive & Rolling Stock helped to depress trade by draining funds out of the secondary market, they added.

The benchmark Shanghai Composite Index closed down 50.99 points or 1.86 pct at 2,690.75, near an intraday low of 2,684.73.

China South Locomotive (SHA 601766) , which plans to issue up to 3 bln A-shares, set the price range for its IPO in Shanghai at 2.1-2.18 yuan per share.

China Shenhua Energy (SHA 601088; HK 1088), the country's largest coal producer, lost 6.37 pct to 28.39 yuan, while Yanzhou Coal Mining (SHA 600188; HK 1171; NYSE YZC) tumbled 8.31 pct to 16.99 yuan.

Jiangxi Copper (SHA 600362; HK 0358) shed 6.59 pct to 20.27 yuan and Aluminum Corp of China (Chalco) (SHA 601600; HK 2600) slumped 5.31 pct to12.13 yuan.

Zijin Mining (SHA 601899; HK 2899) dropped 6.94 pct to 6.70 yuan.

Angang Steel (SZA 000898; HK 0347) dropped 8.13 pct to 10.85 yuan and Maanshan Iron & Steel (SHA 600808; HK 0323) fell 4.20 pct to 4.79 yuan

Panzhihua New Steel & Vanadium (SZA 000629) jumped 8.37 pct at 8.80 yuan, while Sichuan Changcheng Special Steel (SZA 000569) added 5.02 pct to 5.86 yuan. Chongqing Titanium (SZA 000515) rose 4.05 pct to 12.58 yuan.

Property stocks also tumbled with China Vanke (SZA 000002; SZB 200002), the country's top property developer by market value, falling 6.26 pct to 7.94 yuan.

Banks gave up most of the early gains after the official Shanghai Securities News reported that the central bank has agreed to increase the loan quota for commercial banks this year to help small and medium-sized enterprises.

The loan quota for national commercial banks will rise by 5 pct, while the quota for local commercial banks will be raised by 10 pct, the report said.

China Petroleum & Chemical Corp (Sinopec) (SHA 600028; HK 0386; NYSE SNP) rose 0.81 pct to 11.22 yuan, benefiting from a 3.69 usd drop in crude oil prices on Monday.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.