Stocks dip, foreign investment slows

Chinese stocks retreated on Tuesday, dragging the benchmark index down the most in a month. The decline, led by heavyweights, came just a day ahead of the scheduled restart of new share issuances after a four-month hiatus. Lu Qijian / For China Daily

Chinese equities retreated on Tuesday, dragging the benchmark index down the most in a month. The decline was led by heavyweights, including banks and oil companies, just a day ahead of the scheduled restart of new share issuances after a four-month hiatus.

The benchmark Shanghai Composite Index lost 0.92 percent, settling at 2,066.7 points, whereas the Shenzhen Component Index dropped 1.15 percent to 7,331.4 points. The CSI 300 index of the biggest stocks in Shanghai and Shenzhen closed down 1.01 percent.

Bank of China lost 1.07 percent in Shanghai, closing at 2.78 yuan ($0.45) per share, after reporting to the Shanghai Stock Exchange that a report by the National Audit Office had found irregularities in the bank's loans and management of financial revenues and expenditure.

Industrial and Commercial Bank of China, the country's biggest stock by capitalization, lost 1.32 percent to 3.73 yuan a share. China Construction Bank dipped 0.95 percent to 4.25 yuan a share.

Official figures showed on Tuesday that the new foreign investment China attracted in May was the lowest in 16 months. The Ministry of Commerce said on Tuesday that China attracted $8.6 billion in foreign direct investment during the month, down 6.7 percent year-on-year.

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