Shares end rally, heat boosts utility sector

Stock markets on the Chinese mainland snapped their recent winning streak Wednesday in a session characterized by heavy trading.

After a mixed opener, yuan-denominated shares trading in Shanghai and Shenzhen rode into the midday break on an upswing. Conditions deteriorated in the afternoon, although late gains among property, utility and financial service stocks kept overall losses in check.

The Shanghai Composite Index gave up 13.72 points, or 0.67 percent, to 2,046.78; while the Shenzhen Component Index dipped 47.04 points, or 0.58 percent, to 8,096.09. The small- and medium-sized enterprises (SME) board shed 1.41 percent, while the ChiNext Index fell 2.98 percent.

Combined turnover for the two exchanges hit 210.9 billion yuan ($34.45 billion), up from Tuesday's 208.4 billion yuan.

The nationwide heat wave drove utility stocks higher, with Anhui Water Resources Development Co Ltd cleared the daily 10 percent limit to close at 7.87 yuan. Chongqing Three Gorges Water Conservancy and Electric Power Co Ltd surged 6.9 percent to 10.23 yuan.

Property stocks rose as well on signs that the China Securities Regulatory Commission (CSRC) was easing refinancing policies in place against listed developers. Yeland Group Co Ltd and Zhonghong Holding Co Ltd both hit the 10 percent limit, closing at 3.13 yuan and 9.45 yuan respectively.

Sundy Land Investment Company Limited announced Tuesday evening that it intends to raise 1.5 billion yuan to finance residential projects. Its stock price soared by 7.77 percent to 5.54 yuan.