Chinese shares ended down 1.32 percent on Friday after climbing for six trading days, and after the end of the official interim earnings period left investors with few trading cues.
The benchmark Shanghai composite index closed at 1,636.691 points. Turnover in Shanghai A-shares was a modest 19.6 billion yuan ($2.5 billion), versus 19 billion yuan on Thursday.
The drop was technically short-term bearish because it broke the uptrend line from mid-August, at 1,650 points, and followed a negative 14-day momentum divergence at the August high.
With the half-year results reporting season ended on Thursday - combined net profits fell a disappointing 15 percent from a year earlier, according to Reuters calculations - there were few factors to stimulate activity.
The bank sector led losses. Bank of China fell for the fourth straight day, dropping 0.61 percent to 3.24 yuan, near its post-listing intra-day low of 3.22 yuan.
China Merchants Bank Co Ltd, which has been rising to record highs on speculation related to its upcoming Hong Kong initial public offer, slid 2.57 percent to 8.34 yuan. Pudong Development Bank Co is still considering floating shares in Hong Kong next year, its chairman reiterated in an interview published by the China Business News on Friday. Its shares fell 2.34 percent to 9.60 yuan.
"Sentiment will not change much in the next two weeks. Turnover didn't shrink with the decline of the index, which was a positive sign," said Cao Jianming, analyst with Orient Securities.
Cao predicted the index would linger above 1,600 in coming week. Technically, the index has immediate support around 1,620 points, its mid-August highs. Copper prices on the Shanghai Futures Exchange jumped their daily 4 percent limit on Friday, but related stocks did not follow. Jiangxi Copper inched down 0.92 percent to 10.75 yuan.
China Vanke Co Ltd, the country's biggest property developer, which had gained nearly 10 percent over the past week on talk that the sector has seen the worst of government tightening measures, fell 1.88 percent to 6.77 yuan. Its warrants will stop trading on Monday, which also reduced speculative interest in the stock, some said. Shares in Zhejiang Supor Cookware Co Ltd rose 3.75 percent to 16.59 yuan after the company's shareholders approved a plan to sell a majority stake to France's SEB.