China stocks fall, bank sector soft

China's key stock index slipped 0.85 percent Wednesday, with the bank sector soft amid worries of fundraising in the banking industry, while the outlook for more new share supply weighed on sentiment.

The Shanghai Composite Index ended at 3,254.22 points. The Shenzhen Component Index lost 0.09 percent to close at 13,505.18 points. Combined turnover shrank to 260.93 billion yuan ($38.20 billion) from 265.55 billion yuan ($38.88 billion) on the previous trading day. The benchmark Hang Seng Index was up 0.62 percent at 22,416.67.

Banks were soft, with Bank of China losing 1.15 percent to fall to 4.29 yuan ($0.63) after the Hong Kong Economic Times reported it was likely to approve a capital raising plan in March to boost its adequacy ratio. Shanghai Pudong Development Bank dropped 1.97 percent to 20.93 yuan ($3.06). Citic Bank, the banking unit of the nation's largest investment company, fell 2.82 percent to 7.94 yuan ($1.16).

Coal shares gained on weather-related worries over coal transport and supplies, with Changchun Gas rising 1.71 percent to 12.52 yuan ($1.83).

Agencies