The slide continued into Friday, accompanied by a drop in trading sentiment, as the heavily weighted insurance, shipping, brewing and coal sectors retreated. Turnover descended to 71.9 billion yuan ($11.42 billion), down from 73 billion yuan Thursday.
The government's pledge to focus on environmentalism and sustainable ecological development under the "Beautiful China" concept which emerged from the 18th National Congress of the Communist Party of China was a catalyst for environmental protection shares all week.
Reports that the China Securities Regulatory Commission would roll out new dividend taxes in January to encourage investors to hold onto their equity positions was greeted coolly by the market Friday. Under the terms of the new tax, investors who kept their equities for more than a year would only have to pay a 5 percent dividend tax, down from the current rate of 10 percent.
The new tax may help the A-share market grow over the long term, but will be a poor buffer against fluctuations in the coming weeks, Gui Haoming, chief analyst at Shenyin & Wangou Securities, told the China Business News Saturday. Gui warned investors to reduce their risk exposure and said that last week's volatility could be a sign that the market has further room to drop in the days ahead.
Landmark building should respect the public's feeling
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