Stock markets decline amid lackluster trading

Stock markets in the Chinese mainland fell for a second straight day on Thursday amid tepid trading.

The Shanghai Composite Index fell by 0.57 percent or 11.69 points to 2,055.59 points on Thursday. The Shenzhen Component Index declined by 0.92 percent or 67.17 points to 7,194.74 points.

The combined turnover on the two bourses on Thursday was 177.96 billion yuan ($28.66 billion), decreasing from Wednesday's 227.26 billion yuan.

On Thursday, the auto, liquor, and real estate sectors led the decline while the nonferrous sector bucked the trend.

Huatong Road & Bridge Group Co, a developer based in North China's Shanxi Province, may miss a bond payment of 400 million yuan on July 23, the company said on Wednesday. Analysts say the company's default would hurt investors' sentiment.

The fall in the auto sector came after China announced on Wednesday guidelines that included a cut in official expenses by halting allotment of vehicles to junior officials.

Anhui Jianghuai Automobile Co (JAC) dropped by 2.45 percent to 11.54 yuan and Chongqing Changan Automobile Company dipped by 2.28 percent to 12.42 yuan on Thursday.

ChiNext, China's NASDAQ-style board for high-tech and start-ups listed in Shenzhen, dropped for a third consecutive day, declining by 0.44 percent or 5.81 points to 1,312.81 points on Thursday.

Leshi Internet Information & Technology Corp, the biggest company in ChiNext, dropped by the daily limit of 10 percent to 32.65 yuan.