Chinese shares inched down on Monday as investors sold metals counters such as Jiangxi Copper amid falling prices for copper and zinc. The benchmark Shanghai composite index closed at 1,657.689 points, down 0.11 percent. It has still jumped 43 percent since the start of this year.
"Blue chips have been quite steady today, while metals fell due to lower global prices," said Shi Honglin, an analyst at Qinghai Securities.
"The market will likely see mild gains in the near future."
Prices for copper, which reached all-time highs on May 11, fell further on Monday, triggering a 10-percent fall for Jiangxi Copper. Shares in the major Chinese copper producer, which slid by its daily limit to end at 11.44 yuan, have lost 33 percent in the past week.
Other companies in the metals sector were likewise hit by the price drop. Shenzhen-listed Yunnan Copper fell its daily 10 percent limit to 8.42 yuan, while Baotou Aluminium Co Ltd also shed 10 percent to close at 8.33 yuan.
The Shanghai benchmark has climbed 15 percent so far this month, boosted by market-friendly government steps including a pledge to list more high-quality companies.
"Chinese savers are now becoming investors, which is very positive," said Jing Ulrich, chairman of China equities at J.P. Morgan Chase & Co.
Several big Chinese companies that have already listed in Hong Kong, such as Air China, may raise at least $10 billion in domesic A-share IPOs this year as Beijing is set to resume such listings in the coming months, she forecasted.
Jing said the two biggest long-term concerns for the market would be corporate governance of domestically listed firms and the overall macroeconomic environment.
China's top steelmaker, Baoshan Iron and Steel Co Ltd (Baosteel}, gained 1.24 percent to 4.91 yuan. Smaller rival Baotou Iron and Steel rose 10.2 percent to 2.70 yuan. The two were among Monday's four most active stocks.
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