A-shares suffer as govt holds back on supportive measures

Stocks on the Chinese mainland mostly weakened Tuesday as investors anticipating assertive policy support for the economy and the markets were kept waiting another day.

The Shanghai Composite Index lost 23.99 points, or 1.04 percent, to end at 2,286.61; while the Shenzhen Component Index surrendered 113.52 points, or 1.22 percent, to close at 9,163.63.

Combined trading volume at the two exchanges totaled 197.2 billion yuan ($31.72 billion) Tuesday, up from Monday's 145.3 billion yuan.

Both indices jumped at opening, although the upswing was short-lived as losses to most heavy sectors put the markets on a downward track. Analysts warn that market activity may be muted in the days ahead as investors keep a watchful eye on policies emerging from the ongoing two sessions.

In the meantime, the media and entertainment sector was a major loser Tuesday, shaving off over 4 percent on the day. Huayi Brothers Media Corp lost 3.27 percent to 17.73 yuan.

Shares of commercial lenders dived as well following reports that the China Banking Regulatory Commission (CBRC) had given banks an ultimatum to straighten out their wealth management products or risk having their financial management licenses revoked. China Minsheng Banking Corp gave up 4.70 percent to 9.74 yuan.

Environmental protection stocks were also crimped after recent run-ups. Nanjing CEC Environmental Protection Co was down 5.30 percent to 14.47 yuan.

Petroleum was one of the few sectors that managed to break through into positive territory Tuesday. State-owned oil giants, China Petroleum & Chemical Corp, commonly known as Sinopec, and PetroChina Co, added 1.63 percent and 0.90 percent to close at 7.47 yuan and 8.96 yuan respectively.