China's shares closed 0.13 percent lower on Wednesday on concerns over Beijing's plan to float non-traded state shares, but most index heavyweights bucked the trend as investors sought bargains.
The benchmark Shanghai composite index slipped to 1,131.774 points, hit by fears of a deluge of new shares through Beijing's effort to offload $250 billion of state holdings in listed firms.
China United Telecommunications Corp Ltd, the smaller of the country's two cellular carriers, was the most actively traded stock and rose 0.4 percent to 2.52 yuan.
Top Asian refiner Sinopec Corp was also active, adding 0.25 percent to 3.95 yuan. Huaxia Bank, the country's second-smallest listed lender, jumped 1.72 percent to 4.15 yuan. "Some index heavyweights found favour but further gains should be limited ahead of the long holiday break next week," said Qian Qimin at Shenyin & Wanguo Securities.
Analysts said sentiment was cautious as the Shanghai and Shenzhen stock exchanges will be closed all of next week for the annual National Day holidays.
China in April revived a programme to float non-traded state shares, which account for about two thirds of market capitalisation.
Up to now, 145 listed firms - or more than a 10th of some 1,400 listed firms - have either said they would take part in or have completed their reforms.
The index has fallen 10 percent so far this year, depressed also by other factors, such as Beijing's economic cooling steps.