Markets mixed, EU tariffs rock solar shares

Stock markets in Shanghai and Shenzhen closed on opposite sides of the break-even point Wednesday as trading sentiment ebbed.

The Shanghai Composite Index surrendered 1.49 points, or 0.07 percent, to close at 2,270.93; while the Shenzhen Component Index edged up 0.21 percent, or 19.17 points, to finish at 9,143.44.

Both indices opened lower Wednesday following contractions at US equity markets during post-Asian trading. The Shanghai Composite and the Shenzhen Component traded within a tight range for most of the day after losses in the aircraft manufacturing, shipping and cement sectors set the tone early in the morning session. Afternoon gains in electronic, wine and oil stocks helped the indices crawl back later in the day, giving the Shenzhen benchmark enough steam to close above par.

Combined turnover at the two markets eased to 149.8 billion yuan ($24.43 billion) Wednesday, down from Tuesday's 199.7 billion yuan.

According to announcements posted Wednesday on the Ministry of Commerce's website, the Chinese government has begun dumping and countervailing investigations into wine coming from the European Union (EU). These statements quickly sent Chinese winemakers bubbling higher. Yantai Changyu Pioneer Wine Co hit the 10-percent daily limit at 44.44 yuan. Tonghua Grape Wine Co Ltd jumped up 6.18 percent to 11.86 yuan.

On the flip-side of the anti-dumping coin though, solar equipment manufacturers trading on A-share markets came under a cloud after the European Commission said it would impose punitive tariffs on Chinese solar panels effective June 6. Risen Energy Co shed 4.12 percent to 5.58 yuan. EGing Photovoltaic Technology Co surrendered 4.27 percent.