An investor checks stock information at a stock trading hall in Hangzhou, capital of east China's Zhejiang Province, Nov. 27, 2012. Chinese stocks continued to fall Tuesday, with the benchmark Shanghai Composite Index dipping 1.3 percent, or 26.3 points, to end at 1,991.17, the lowest level since February 2009. The Shenzhen Component Index closed at 7,936.74, down 79.33 points, or 0.99 percent. (Xinhua/Ju Huanzong)
Chinese shares closed at a near four-year low Tuesday as investors worried over an anaemic global economy and liquidity shortage on the stock market.
The benchmark Shanghai Composite Index dipped 1.3 percent, or 26.3 points, to end at 1991.16, the lowest level since February 2009.
It was also the first time in nearly four years the index finished below 2,000 points.
The Shenzhen Component Index closed at 7,936.74, down 79.33 points, or 0.99 percent.
Combined turnover on the two bourses grew to 78 billion yuan (12.4 billion U.S. dollars) from 63.9 billion yuan on Monday.
Shares ended in green across the board, with losers outnumbering gainers by 924 to 42 in Shanghai and by 1,456 to 59 in Shenzhen.
The fall came after European and U.S. stocks suffered on Monday amidst concerns over debt woes in Greece and the so-called "fiscal cliff" that will see spending cuts and tax rises in the United States.
The Dow Jones industrial average dropped 0.33 percent on Monday, while the FTSEurofirst 300 Index went down 0.5 percent.
Expectations for an increase in stock supply also dragged down share prices.
More than 180 billion yuan of shares that investors are restricted from unloading in 96 listed firms will become eligible for sale next month, according to statistics from Southwest Securities.
Investors were also jittery about a growing queue of companies waiting to get a greenlight for listing, which would further strain market liquidity.
Altogether 808 companies were applying for launching initial public offerings as of Nov. 22, according to data from the China Securities Regulatory Commission.
Green businesses, media firms and machinery sectors led the decline on Tuesday, while banks bucked the trend.
The share price of China Mingsheng Banking Corp. Ltd. rose 1.3 percent to close at 6.22 yuan. Bank of Communications edged up 0.24 percent to 4.18 yuan.
Jiugui Liquor, the subject of tests indicating excessive plasticizer content in its products, declined by the daily limit of 10 percent for a third consecutive trading day to 34.69 yuan.
Copyright ©1999-2011 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.