Chinese stocks retreat on 4G news

Chinese shares fell on Thursday after rising more than one percent in the previous session, led by 4G related shares, as investors took profits after 4G licenses were issued.

The benchmark Shanghai Composite Index went down 0.21 percent, or 4.70 points, to finish at 2,247.06. The Shenzhen Component Index fell 0.47 percent, or 40.03 points, to finish at 8,560.79.

China's Ministry of Industry and Information Technology (MIIT) handed out long awaited 4G licenses on Wednesday to three domestic telecom operators.

Shares related to the 4G industry chain made wide losses, with ZTC Corp down 5.95 percent. Datang Telecom Technology plunged by 6.70 percent, while Fuchun Communications slumped by the daily limit of 10 percent.

The poor performance of technology stocks also drove the ChiNext Index, China's NASDAQ, down by more than 3 percent.

Combined turnover on the two bourses shrank to 222.90 billion yuan ($36.60 billion) from 271.48 billion yuan the previous day.

Stocks in medical equipment were also big losers, with Zhejiang Di'an Diagnostic down 7.05 percent and Aier Eye Hospital Group closing 5.15 percent lower.

The media and entertainment sector also saw losses, with the index tracking it down 2.09 percent. Beijing Enlight Media slumped 4.18 percent and Shanghai New Culture Media dropped 3.96 percent.