Most mainland shares rose yesterday with Aluminum Corp of China (Chalco) soaring 10 percent, though the main index was pulled down by weakness in banks and oil refiners.
The Shanghai Composite Index closed down 0.11 percent at 2901.85 points, well off an intra-day low of 2851.116, after jumping 3.64 percent on Wednesday.
Over 15 Shanghai A shares rose up their 10 percent daily limits.
Turnover in Shanghai A shares was 68.9 billion yuan, still modest but up from Wednesday's 67.2 billion.
Industrial and Commercial Bank of China sank 2.08 percent to 5.17 yuan, and refiner Sinopec slid 2.16 percent to 11.3 yuan, on profit-taking after they rose sharply on Wednesday.
But Chalco jumped in the last 90 minutes of trade, closing up its 10 percent daily limit at 14.19 yuan in its heaviest turnover for a month. This pulled up other non-ferrous metals producers such as Jiangxi Copper, which gained 4.09 percent to 23.9 yuan.
Some mutual funds have been buying blue chips in recent days on the grounds that valuations have dropped to reasonable levels, and they apparently targeted Chalco yesterday, traders said. It had tumbled from an end-May level of 19.2 yuan, partly because of a profit warning.
Several analysts expressed surprise at Chalco's leap, noting that given the chance of more power price hikes and the possibility that aluminium export tax rebates may be cut, the company could face fresh pressure on its earnings.
Among other gainers, China COSCO Holdings surged 6.72 percent to 21.29 yuan.
HK stocks down
Hong Kong shares reversed early gains to close 0.8 percent lower, hurt by losses in retail-focused Li & Fung and cellphone maker Foxconn on broker downgrades as US consumption falters.
Offshore oil producer CNOOC slid 1.9 percent as oil prices continued to retreat after US weekly data showed a surprise increase in domestic crude stocks.
The Hang Seng Index closed 179.49 points lower at 22455.67 after touching 22885.35 earlier.
The China Enterprises Index slipped 0.8 percent.
Shares in Li & Fung slid nearly 7 percent to a three-month low after Merrill Lynch downgraded the retail-focused trading firm on fears a worsening US consumption environment will eat into margins.
Foxconn plunged 5.3 percent on concern over declining market share at Motorola, one of its biggest customers for contract manufactured cellphones.
Source: China Daily
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