China stocks decline sharply Tuesday

Chinese stocks retreated on Tuesday, ending the previous rises for five straight trading days, dragged by bank and brokerage shares. The benchmark Shanghai Composite Index shed 0.86 percent, or 18.31 points, to finish at 2,114.45. The Shenzhen Component Index closed at 8,686.48, down 142.97 points, or 1.62 percent. Combined turnover on both bourses came in at 111.17 billion yuan (17.62 billion U.S. dollars). Most of the stocks saw losses on Tuesday, with losers outnumbering gainers by 735 to 205 in Shanghai and by 1,235 to 262 in Shenzhen. Analysts said the stock market is likely to see volatility in the current period as it is trying to stabilize. The psychological point of2,312 has become a major pressure point that will hinder further gains after rises for five straight days. Brokerage stocks led the declines, as Western Securities Co. slumped 5.13 percent to finish at 14.23 yuan per share and Gf Securities Co. fell 3.90 percent to close at 13.54 yuan per share on Tuesday. Bank shares also performed weakly, as investors were inclined to be more cautious after excessive gains previously In this round of adjustment, Industrial Banks Co. tumbled 1.51 percent to finish at 12.39 yuan per share, while Agricultural Bank of China Limited, the nation's fourth largest lender by asset value, slipped slightly by 0.40 percent to close at 2.51 yuan per share. Bucking the trend, some cheaply-priced iron and steel shares rebounded after the declines in the morning. Zhejiang Jiuli Hi-tech Metals Co. climbed 5.71 percent to finish as 13.69 yuan per share. And Inner Mongolia Baotou Steel Union Co. jumped by the daily limit to finish as 5.82 yuan per share.