China's shares closed nearly 0.5 percent lower on Wednesday as investors sold top steel maker Baoshan Iron and Steel Co Ltd to lock in profits, but rallying bank stocks defied the trend.
The benchmark Shanghai composite index closed at 1,130.759 points, after climbing 0.41 percent the previous day. Baosteel lost 1.5 percent to 3.93 yuan. It has advanced 1.8 percent as of Tuesday since December 1.
Sinopec Corp, Asia's largest oil refiner, shed 0.44 percent to 4.49 yuan, wiping out a 0.45 percent gain from the previous session. "Investors tend to take quick profits when sentiment is weak," said Shi Honglin, an analyst with Qinghai Securities.
Bucking the trend, banking stocks rose on Wednesday, partly helped by Fortis's announcement it will raise its stake in Shanghai-based Fortis Haitong Investment Management to the legal ceiling of 49 percent, from 33 percent now.
In the absence of market-moving news, that helped shore up confidence in domestic financial counters. Pudong Development Bank Co Ltd, Citigroup's main partner in the country, climbed 0.21 percent while Huaxia Bank Co Ltd, the second-smallest of five mainland-listed lenders, rose 0.43 percent.
China's stock market has slid nearly 11 percent so far this year, hit by Beijing's unpopular scheme to float $250 billion of non-traded state shares in listed firms.
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