FX.co ★ China Stock Market Review

China shares ended down due to profit-taking in pharmaceutical, telecom stocks, while supply concerns also weighted on the market sentiment. Shanghai Composite fell 2.91% to 2860.69.
Recent news from big caps about issuing new shares for equity raising affected the sentiment of investors. The reason for it is that during 1Q banks and real-estate firms exhausted capital but they need to lend money and buy land, and the only solution of the problem is to issue new shares in order to get more capital.
Among decliners are China Minsheng Banking -5.0% at CNY6.44, Shanghai Pudong Development Bank down 5.8% at CNY19.00, China Vanke off 3.3% at CNY10.35.

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Analyst: Vladimir Donin