Chinese shares fell 0.38 percent on Wednesday, as investors locked in profit after shares reached nine-week highs the previous session. The benchmark Shanghai composite index closed at 1,689.389 points, after touching a high of 1,713.989 on buoyant sentiment over proposed new rules for initial public offerings, analysts said.
But investors took profit after shares rose above the key 1,700-point level for the first time since late July, they added. Turnover in Shanghai A-shares was 22.6 billion yuan ($2.8 billion), up from 19.7 billion on Tuesday. "The market has gained more than 160 points in the past month. Some investors took profit from the recent rally and started to withdraw from the market," said analyst Zhou Lin at Huatai Securities.
Air China, the country's flagship carrier, lost 1 percent to 2.98 yuan after reaching a record high of 3.04 yuan. Metal and gold extended losses from the previous session. Jiangxi copper dropped 1.73 percent to 10.24 yuan while Zhongjin Gold faded 3.24 percent to 17.63 yuan.
Copper futures on the London Metal Exchange fell in early trade on Wednesday as investors grew nervous about its sharp fall in earlier sessions. The official Shanghai Securities News said on Tuesday that a so-called "greenshoe" system would be introduced, under which share issues could be expanded to meet heavy demand. This could reduce excessive volatility during listings, encourage more top companies to list, and reduce costs for firms.
China Merchants Bank rallied 2.45 percent to 9.19 yuan, after the official China Securities Journal said that the public part of its Hong Kong IPO was expected to be at least 45 times oversubscribed.
Sinopec Corp, the top Asian oil refiner, rose 1.19 percent to 6.80 yuan, the highest since May 23. Analysts expect Sinopec's stock to be suspended at the end of the week for a shareholder vote on its state share reform plan, and, given the market's firm tone, some investors are keen to snap up the stock before then.
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