Chinese shares drop ahead of Thursday inflation data release
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Chinese stocks fell Wednesday as investors turned cautious ahead of Thursday's release of October inflation data.
The benchmark Shanghai Composite Index dropped 0.63 percent, or 19.64 points, to close at 3,115.36.
The Shenzhen Component Index lost a mere 0.06 percent, or 8.61 points, to 13,705.68.
Combined turnover dropped slightly from Tuesday's 447.3 billion yuan (US$67.31 billion) to 445.76 billion yuan (US$67.08 billion).
Losers outnumbered gainers 464 to 408 in Shanghai, but in Shenzhen gainers outnumbered losers 632 to 454.
Zhang Ping, head of the National Development and Reform Commission, said Tuesday China's consumer price index (CPI) may exceed the government's full-year 3 percent target.
Zhang's remarks prompted investors' concern that the central government may further tighten monetary policy.
Affected by the negative sentiment, real-estate sector stocks dropped most.
Vanke, China's largest developer by market value, fell 3.68 percent to 9.15 yuan per share, extending its 4.04 percent loss on Tuesday.
The financial sector also lost ground, partly due to speculation the central bank will order differentiated reserve requirements for several large banks, including Bank of China and Bank of Communications.
Bank of Communications, China's fifth largest lender, lost 2.08 percent to close at 6.13 yuan.
It is widely believed the monthly CPI data to be released Thursday will show a 4 percent year on year rise for October.
But the inflation speculation boosted consumer goods producers, especially brewers.
Kweichow Moutai, the liquor producer, climbed 8.36 percent to 179.73 yuan per share.
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