Banks, liquor makers fall as stocks see mixed performance

Stock markets in the Chinese mainland saw mixed performance on Tuesday, following a rise in the previous two sessions.

The benchmark Shanghai Composite Index inched up by 1.03 points or 0.05 percent to 2,067.31 points on Tuesday. The Shenzhen Component Index edged lower by 21.41 points or 0.29 percent to 7,252.35 points.

Combined turnover on the two bourses on Tuesday was 207.38 billion yuan ($33.43 billion), down from Monday's 226.98 billion yuan.

Companies based in Shanghai, Tianjin and Hebei Province performed strongly on Tuesday, backed by expectations of reform at State-owned companies.

Media reports on Tuesday said the Shanghai (Pilot) Free Trade Zone might relax restrictions on foreign investors.

Eight Shanghai-based companies including Shanghai International Port Group Co and Shanghai Lujiazui Finance and Trade Zone Development Co soared by the daily limit of 10 percent.

Chinese banks had risen in the previous two trading sessions after the China Securities Regulatory Commission unveiled new rules regarding issuance of long-awaited preferred shares. But shares in banks fell back on Tuesday.

China CITIC Bank fell by 2.54 percent to 4.61 yuan, while Industrial Bank Co declined by 1.98 percent to 9.38 yuan.

Liquor makers and recently listed companies also underperformed on Tuesday.

Shanxi Xinghuacun Fen Wine Factory Co declined by 7.74 percent to 16.20 yuan on Tuesday and premium liquor maker Kweichow Moutai Co dipped by 2.73 percent to 166.62 yuan.

Kweichow Moutai said in an annual report released Monday that the company expects revenue to rise 3 percent in 2014, compared with a 17 percent increase in 2013.

Liquor makers have seen sluggish sales since the crackdown on luxury consumption by government officials in the past year.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, fell by 2.47 points or 0.18 percent to 1,394.82 points on Tuesday.