Rally in Chinese mainland stocks fizzles as banks, utility shares retreat

The biggest jump in Chinese mainland stocks in almost three months petered out, led by a decline in banks and utility companies, as manufacturing data failed to ease concern about the economic outlook.

The Shanghai Composite Index slipped 0.1 percent at the close. The benchmark stock measure surged 3.3 percent on Tuesday amid speculation the equities would be included in MSCI Inc's global benchmark indexes.

Data released on Wednesday showed an official factory index stood at 50.1, around the line between expansion and contraction, while a nonmanufacturingufacturing gauge fell from the previous month. The yuan traded near its lowest level in five years.