Chinese shares dipped 0.3 percent on Wednesday after investors sold blue chips, but Baoshan Iron and Steel Co Ltd rose after unveiling this week an improved plan to sweeten an impending sale of state-owned stock. The benchmark Shanghai composite index ended the day at 1,104.992 points.
Analysts did not foresee a recovery in the near term, as more and more firms stand to be drafted into the programme to cut government holdings. Wuhan Steel, China's number three steel mill, shed 3.8 percent to end at 3.57 yuan, extending a 3 percent fall in the morning session.
China United Telecommunications Corp Ltd, the smaller of the country's two cellular carriers, finished 1.5 percent off at 2.69 yuan.
Bucking the trend, top domestic mill Baosteel rose 2.9 percent to 5.03 yuan in the first day of trade after unveiling an enhanced compensation plan to placate nervous public shareholders.
The listed unit of the world's sixth-largest steel maker altered its share sale plan to grant public stockholders about $500 million worth of bonus shares and warrants. Trade in the company's stock had been suspended between June 20 and June 28 while it worked out the details.
The benchmark index is down nearly 13 percent so far this year, almost matching a 15 percent slump over 2004 that made it the world's worst performing major index.
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