Media, trade zone stocks lead decline on mainland exchanges

Stocks in the Chinese mainland fell Wednesday despite gains in the morning, led by shares in the media and those related to the Shanghai free trade zone.

The benchmark Shanghai Composite Index dropped by 17.63 points or 0.82 percent to close at 2,139.61 points on Wednesday.

The Shenzhen Component Index declined by 163.87 points or 1.94 percent to 8,287.86 points.

Combined turnover on the two bourses on Wednesday was 187.45 billion yuan ($30.76 billion), increasing from Tuesday's 166.12 billion yuan.

The People's Bank of China said in its third-quarter monetary policy report published after the market closed on Tuesday that the country's economy is facing headwinds, with inflation set to rise further in the fourth quarter due to rising rental and labor costs.

The media and entertainment sector led the decline, falling by 3.36 percent. Tangel Publishing Co fell by 7.42 percent to 26.20 yuan.

Shares linked with the Shanghai free trade zone also retreated, with Shanghai Waigaoqiao Free Trade Zone Development Co falling by 4.32 percent to 36.96 yuan.

Shares in oil and gas firms bucked the trend on Wednesday, with investors holding high hopes for reform in the industry. Shenzhen Guangju Energy rose by the daily limit of 10 percent to 6.56 yuan. China Petroleum & Chemical Corp (Sinopec) rose by 2.16 percent to 4.72 yuan and PetroChina Co increased by 1.28 percent to 7.91 yuan.

Also, with the approach of Singles' Day on November 11, stocks related to retail and logistics gained. Jiangsu Xinning Modern Logistics Co and Zhuhai Winbase International Chemical Tank Terminal Co hit the daily upward limit of 10 percent.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, fell by 18.24 points or 1.45 percent to finish at 1,241.79 points on Wednesday.