Mainland stock markets see decline after three-day rise

Stock markets in the Chinese mainland fell on Thursday, ending three sessions of rises.

The benchmark Shanghai Composite Index declined by 33.26 points or 1.58 percent to 2,073.10 points on Thursday. The Shenzhen Component Index closed down by 199.04 points or 2.46 percent at 7,897.33 points.

Combined turnover on the two bourses on Thursday was 163.0 billion yuan ($26.84 billion), up from Wednesday's 146.4 billion yuan.

An official at the National Development and Reform Commission (NDRC) said on Wednesday in a report to the State Council, China's cabinet, that the Chinese economy faces increasing risks from local government debt and overcapacity, the Xinhua News Agency reported.

Shenyin & Wanguo Securities Co said in a research note on Thursday that the comment had triggered market concerns that the domestic debt situation could deteriorate in the near future.

Shares in property firms and banks mostly fell on Thursday. Analysts said that China Minsheng Banking Corp is the only one of 16 listed banks whose market valuation is currently above the firm's net assets.

China Vanke Co, China's largest property developer by market value, fell by 1.39 percent to 7.80 yuan.

Gold companies outperformed on Thursday. Zhongjin Gold Co rose by 5.65 percent to 8.60 yuan and Chifeng Jilong Gold Mining Co rose by 3.25 percent to 12.71 yuan.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, also retreated on Thursday by 18.81 points or 1.46 percent to 1,269.54 points.