Chinese shares slid Thursday amid concerns of another reserve ratio hike with the majority of stocks down including gold, but those of new energy companies, banks and auto makers were up.
The benchmark Shanghai Composite Index dropped 10.83 points, or 0.37 percent, to end at 2,902.98.
The Shenzhen Component Index declined 1.41 percent, or 182.11 points, to finish at 12,698.16 points.
Combined turnover expanded to 294.2 billion yuan (44.6 billion U.S. dollars) from 281.7 billion yuan the previous trading day.
Losers outnumbered gainers by 677 to 212 in Shanghai and 986 to 205 in Shenzhen.
The annual session of the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC) opened Thursday in Beijing. It is believed that discussions will focus on how to change the nation's economic growth mode and curb rising inflation.
Confident the government will continue to pour more resources into restructuring the economy, investors bought new energy stocks Thursday. Wiscom System Co., Ltd. rose by the daily limit of 10 percent to 14.69 yuan. Luenmei Holding Co., Ltd. also rose by 10 percent to 11.22 yuan.
Banks and auto makers were also strong. China Merchants Bank rose 4.2 percent to 14.03 yuan. Jiangling Motors Corp. gained 9.6 percent to 31.97 yuan.
Gold shares weakened with Henan Yuguang Gold & Lead Co., Ltd. dipping 5.07 percent to 31.09 yuan. Zijin Mining Group Co., China's biggest gold producer, lost 2.62 percent to 8.18 yuan.
On Wednesday, gold contracts for April delivery on the COMEX Division of the New York Mercantile Exchange rose 6.5 U.S. dollars per ounce, or 0.5 percent, to settle at a record high of 1,437.7 dollars.
With the increase of open-market money supply, analysts expected the central bank to raise the deposit reserve ratio again.
The nation's funds outstanding for foreign exchange rose to 23.08 trillion yuan at the end of January, up 24.39 percent or 501.65 billion yuan from December, said the People's Bank of China, or the central bank, on Wednesday.
On Feb. 12, the central bank announced to raise the deposit reserve requirement ratio by 0.5 percentage points from Feb. 25.
