China's main stock index fell nearly 2 percent on Tuesday as resource shares tumbled in response to falls in global oil and metals prices, while property shares sank after industry leader Vanke reported earnings. The Shanghai Composite Index ended down 1.86 percent at 2,690.746 points, near its intra-day low of 2,684.734.
It has lost 7.31 percent over the past six trading days, falling back towards July's 17-month, intra-day low of 2,566 points. Turnover in Shanghai A shares was very thin at 42.3 billion yuan ($6.2 billion) against 37.4 billion yuan on Monday, when turnover shrank to its lowest level since December 2006. Losing Shanghai A shares outnumbered gainers by 799 to 122.
Property shares tumbled after Vanke, the biggest listed real estate developer, reported that first-half net profit rose 24 percent. That was an acceleration from 17 percent in the first quarter, but investors remain concerned by weakness in China's residential property market.
Vanke said it had scaled back its development plans for the second half of this year. It originally planned to start work on 8.48 million square metres of space and complete work on 6.89 million square metres this year, but has revised those targets to 6.83 million and 5.86 million.
The company's shares closed 6.25 percent lower at 7.94 yuan, after hitting a new 15-month low of 7.88 yuan. Among resources shares, coal miner Shenhua Energy slid 6.37 percent to 28.39 yuan while Shandong Gold dropped 9.50 percent to 47.51 yuan. Aluminium Corp of China lost 5.31 percent to 12.13 yuan.
Steel shares, which have been sliding since early last week because of concern that a slowing economy could dampen product prices, continued dropping. Industry leader Baoshan Iron & Steel lost 4.38 percent to 7.21 yuan.
Bank shares outperformed, however, after local media published the news, originally reported by Reuters last week, that the central bank was expanding commercial banks' loan quotas. Pudong Development Bank edged down 0.17 percent to 23.25 yuan. Sinopec advanced 0.81 percent to 11.22 yuan in response to the fall in global crude oil prices.
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