BEIJING: Most Chinese shares fell, led by technology shares, as government measures to shore up equities failed to drive a rebound outside the nation’s largest companies.
About three stocks dropped for each that rose on the Shanghai Composite Index, which was 2.2 percent higher at 3,766.37 at the mid-morning break after a 7.8 percent surge at the open. The benchmark gauge was supported by more than 8 percent rallies in PetroChina Co. and Industrial & Commercial Bank of China Ltd., the two largest members on the gauge. The ChiNext index of smaller companies sank 4 percent, while the Shenzhen Composite Index tumbled 2.6 percent.
Mainland shares surged at the start of trading after authorities suspended initial public offerings, brokerages pledged to buy shares and the central bank said it would provide liquidity for margin trading. Central Huijin Investment Ltd., a unit of China’s sovereign wealth fund, said it was buying exchange-traded funds on the secondary market.
“As often the case, it is hard to tell if the fresh measures will help,” Bernard Aw, a strategist at IG Asia Pte. said in Singapore. “However, this may just work if investors believe that the authorities and industry will just come out with stronger measures should the current batch fall short again.”
Foreigners were net sellers of 6.43 billion yuan ($1.04 billion) of mainland shares through the Hong Kong-Shanghai link Monday, the most since the program began in November.
