China's shares edged 0.05 percent lower on Thursday as gains in large caps such as Sinopec Corp were offset by losses in firms that have joined Beijing's unpopular scheme to float non-tradeable state holdings in listed companies.
The benchmark Shanghai composite index finished at 1,098.747 points, reversing a 0.45 percent rise in the midday session.
It has fallen 13.2 percent so far this year, hit by factors including the state-share sell-down and Beijing's economic-cooling steps.
"The market moved narrowly today as both buyers and sellers did not want to push prices sharply up or down," said analyst Chen Jinren at Huatai Securities. "Range-bound trade could continue in the near term." Analysts said the market's lingering weakness had dampened investor interest, although the index should see some support after a four-year slump and would likely hover near 1,100 points in the near term. Sinopec, Asia's largest refiner, was one of Wednesday's most active stocks, rising 0.7 percent to 4.14 yuan.
Firms that completed procedures for the state share reform did not fare as well and some were the biggest decliners on the day.
Property developer Chongqing Yukaifa Co Ltd plunged 32 percent to 3.59 yuan while Jiangsu Wuzhong Industrial Co Ltd dived 31.6 percent to 8.17 yuan. China in April revived a programme to convert non-traded state shares, which account for two-thirds of market capitalisation, into freely floated stock, triggering worries of a possible flood of new shares onto the stock market.