Chinese shares edge down 0.95%, led by heavyweights

(Xinhua)
Updated: 2008-12-30 19:05

BEIJING - Chinese shares closed 0.95 percent down on Tuesday led by heavyweights, as confidence from investors remained low, said market dealers.

The benchmark Shanghai Composite Index shed 0.95 percent or 17.57 points to 1,832.91. The Shenzhen Component Index fell 1.43 percent or 95.04 points to 6,558.16.

Combined turnover expanded to 60 billion yuan (US$8.8 billion) from 57.2 billion yuan on the previous trading day.

China Eastern Airlines, the country's third largest air carrier, saw its shares fall 3.65 percent to close at 4.49 yuan, despite the announcement of an expanded government bailout plan.

Airline shares opened higher in the morning, but investors immediately locked in profits and prices began to decline as of midday.

The air carrier announced on late Monday it would get a total of 7 billion yuan in government capital injection, more than double the previous plan of 3 billion yuan.

"The gloomy market reflects investors' confidence is very low as there are no fresh economy-boosting measures from the government, " said Li Feng, a senior equity strategy analyst with Yinhe Securities.

Some steel makers and property developers also saw their shares fall amid worries about weak corporate earnings in the fourth quarter, Li added.

COFCO Property (Group) Co., Ltd. shed 3.67 percent to close at 4.99 yuan, while China Vanke, the country's largest real estate developer, fell 1.66 percent to 6.50 yuan.