Funding plan stokes rail shares as markets falter

Stock markets on Chinese mainland pulled back Tuesday as anxiety over the tapering of the US Federal Reserve's bond buying program cast a pall over exchanges in Asia.

The Shanghai Composite Index gave up 13.01 points, or 0.62 percent, to close at 2,072.59; while the Shenzhen Component Index shed 51.16 points, or 0.62 percent, to finish at 8,234.56.

Combined turnover reached 191.71 billion yuan ($31.31 billion). up from Monday's 177.24 billion yuan.

Yuan-denominated shares fluctuated mostly above par through morning trading. Most early gains were ultimately wiped away in the afternoon as a wave of bearish sentiment undermined confidence.

Everbright Securities Co saw its share price plummet 10 percent at the start of trading. Few were surprised by this loss given the brokerage's recent trading errors. Analysts estimate that Everbright lost 4.1 billion yuan in market value Tuesday.

On the plus side, railway transport stocks performed well following news that the State Council had issued guidelines covering investment and funding reform for the industry. The new policies encourage the opening of diverse funding channels as well as the engagement of social capital in rail construction and route design. Qingdao TGOOD Electric Co Ltd chugged to the 10-percent daily limit to end at 18.14 yuan, while Daqin Railway Co Ltd and Shandong New Beiyang Information Technology Co Ltd advanced 4.52 percent and 4.07 percent respectively.

Meanwhile, recently announced State Council plans to expand the speed and availability of broadband Internet kept related shares riding high Tuesday. Shenzhen SDG Information Co Ltd and Wuhan Fingu Electronic Technology Co both hit the daily limit to finish at 11.56 yuan and 9.66 yuan respectively.

Components in the coal sector dropped by an average of 1.82 percent as sales and production dipped on thinning demand.