Chinese stocks drop over profit-taking

Chinese shares closed lower on Tuesday mainly due to investors' profit-taking after strong rebounds from the near-four-year low one week ago. The benchmark Shanghai Composite Index moved down 0.44 percent, or 9.07 points, to end at 2,074.7. The Shenzhen Component Index finished at 8,220.54, down 0.55 percent, or 45.25 points. Combined turnover of the two bourses shrank to 126.36 billion yuan (20.09 billion U.S. dollars) from 152.8 billion yuan the previous trading day. Losers outnumbered gainers by 720 to 211 in Shanghai and by 1,201 to 286 in Shenzhen. Last Monday, the Shanghai Composite Index closed at 1,959.77, the lowest level since early 2009. However, in the next five trading days, the index posted strong rebounds and ended at 2,083.77 on Monday, surging 6.33 percent from a week ago. The strong gains have led many investors to sell due to profit-taking, which weighed on the indices. Market heavyweights were mostly weak during Tuesday's trading. PetroChina, the country's largest oil and gas producer, dropped 0.46 percent to 8.69 yuan per share, while the nation's leading oil refiner Sinopec declined 0.94 percent to 6.34 yuan. China Vanke Co., the nation's biggest property developer by market value, dropped 1.07 percent to 9.24 yuan, and Poly Real Estate dived 2.1 percent to 12.14 yuan. China Shenhua, the largest coal miner in China, dropped 0.31 percent to 22.69 yuan per share.