Markets hit by property sector fears

Stock markets in the Chinese mainland fell on Wednesday, amid default concerns in the property sector.

The benchmark Shanghai Composite Index nudged down by 3.46 points or 0.17 percent to 2,021.73 points on Wednesday. The Shenzhen Component Index fell by 123.83 points or 1.70 percent at 7,150.12 points.

Combined turnover on the two bourses on Wednesday was 192.68 billion yuan ($31.08 billion), down from Tuesday's 202 billion yuan.

Following weak performance on Tuesday after the release of data showing a slowdown in house price rises in February, the property sector suffered again on Wednesday amid default concerns.

Late on Tuesday, the People's Bank of China (PBC), the central bank, said in its Weibo account that it had not attended the "urgent talks" to discuss indebted Zhejiang Xingrun Real Estate Co with China Construction Bank, the main lender to the developer.

The central bank's statement ran contrary to earlier media reports, which said that the PBC had a meeting to consider whether to assist Xingrun.

Analysts said there were defaults risk in the property industry, hurting investors' confidence in the sector as well as related areas such as home appliances. Ratings agency Fitch said Wednesday in a research note that "there will be further defaults in this industry."

Leading property developers China Vanke Co and Poly Real Estate Group Co fell by 1.32 percent to 7.50 yuan and 1.60 percent to 6.77 yuan, respectively.

China Construction Bank fell by 0.79 percent.

Meanwhile, investors on Wednesday bought stocks linked to Baoding, a Hebei Province city that is close Beijing, after local media reports said the central government is considering making it a secondary political center. Seven stocks based in Hebei jumped by the daily limit of 10 percent.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, declined by 19.42 points or 1.31 percent to 1,466.22 points on Wednesday.