Shares in banks, oil lead decline

Stock markets in the Chinese mainland continued falling Wednesday, having also slid down on Tuesday.

The benchmark Shanghai Composite Index fell by 18.39 points or 0.89 percent to 2,053.08 points on Wednesday. The Shenzhen Component Index slid by 48.98 points or 0.67 percent to 7,298.13 points.

Combined turnover on the two bourses on Wednesday was 219.92 billion yuan ($35.82 billion), down from Tuesday's 241.44 billion yuan.

Wednesday's fall, led by banks, oil and nonferrous metal companies, outweighed gains in stocks boosted by policy announcements at the ongoing annual two sessions - the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference.

Bank shares suffered as China's money-market rate increased for a second day on Wednesday, with the People's Bank of China, the central bank, having drained cash from the money market on Tuesday.

Bank of Beijing Co fell by 2.80 percent to 7.30 yuan and Ping An Bank declined by 2.55 percent to 10.70 yuan on Wednesday.

The oil sector fell by 3.19 percent Wednesday. China's two major oil companies, Sinopec and PetroChina, both fell, with Sinopec down 4.32 percent to 5.10 yuan and PetroChina sliding by 1.56 percent to 7.58 yuan.

Premier Li Keqiang promised in a speech on Wednesday to promote market-oriented interest rate reform and healthy development of Internet banking, boosting stocks linked to online finance.

Shanghai Ganglian E-commerce Holdings rose by 10 percent to 69.32 yuan.

Li also mentioned that more than 70 billion yuan will be allocated for major water projects, including development of efficient water-saving irrigation, buoying related stocks.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, closed up by 4.13 points or 0.28 percent at 1,464.58 points on Wednesday.