A-shares dip following gains, Vanke extends lead

Stock markets in Shanghai and Shenzhen weakened Tuesday after two days of gains as investors locked in profits.

The Shanghai Composite Index dropped 13.08 points, or 0.56 percent, to close at 2,315.14; while the Shenzhen Component Index shed 26.49 points, or 0.28 percent, to finish at 9,536.36.

Combined trading volume at the two exchanges totaled 240.5 billion yuan ($38.66 billion), up from Monday's 220 billion yuan.

The indices opened at odds but climbed higher over morning trading as liquor, coal and bank stocks picked up steam. The markets rapidly took a turn for the worse late in the afternoon session as aviation, water conservancy construction and environmental protection shares encountered resistance.

Shenzhen B-shares continued to find support in the conversion plan of China Vanke Co. The Shenzhen-based home builder, which resumed trading of both its yuan-denominated A-shares and Hong Kong dollar-denominated B-shares Monday after a voluntary suspension which took place on December 26, announced over the weekend that it intends to swap its B-shares for H-shares trading on the Hong Kong Stock Exchange. The company's A-shares added 5.66 percent to 11.76 yuan, while its B-shares rose 10.04 percent to HK$15.13 ($1.95).

Also in A-shares, the ceramics and cement sectors recorded Tuesday's biggest leaps. Jiangsu Gaochun Ceramics Co tacked on 4.03 percent to 41.58 yuan. Xinjiang West Construction Co raced to the 10-percent daily limit to 15.46 yuan.

Meanwhile, on the downside, the medical equipment sector took the biggest losses. Shanghai Kinetic Medical Co shed 6.08 percent to 45.74 yuan.

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