China's shares closed flat on Wednesday as blue chips turned in a mixed performance, with investors beginning to focus more on companies' earnings prospects as the results season approaches. Stocks in companies deemed to outperform in the medium term, such as Wuhan Steel, rallied. The benchmark Shanghai composite index slipped 0.04 percent to finish at 1,256.923 points, recouping most of its 0.7 percent loss in the morning.
Sinopec Corp, Asia's top oil refiner and the bourse's largest stock, edged down 0.24 percent to 4.15 yuan. It had hovered near one-year lows this week.
But Wuhan Steel Processing Co Ltd, China's third-largest steel maker, climbed 1.3 percent to 3.89 yuan.
Steel counters had underperformed in 2004 despite steel prices staying at multi-year highs throughout much of the year alongside rapid economic growth.
"Most investors will cling to the sidelines until the Spring Festival starting early February," he added.
Markets broke through 1,300-point support in December and had hovered around five-and-a-half-year lows since.
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