China stocks extend loss Tuesday

Chinese stocks closed lower for a second day on Tuesday, dragged mainly by weak property and cement shares. The benchmark Shanghai Composite Index dived 1.6 percent, or 38.64 points, to end at 2,382.91, while the Shenzhen Component Index plunged 2.5 percent, or 244.98 points, to 9,550.93. Combined turnover on the two bourses expanded slightly to 204.34 billion yuan (32.53 billion U.S. dollars) from 201 billion yuan in the previous trading. Losers outnumbered gainers by 790 to 167 in Shanghai and by 1,265 to 258 in Shenzhen. Property shares led the drops on Tuesday, after a media report said the government will implement stricter restrictions on second home purchases to rein in rising home prices. CailianNews.com, a financial information provider, said in a microblog posting that the measures would involve either requiring higher down payments or adopting higher interest rates for second home buyers. The sector's sub-index plunged 3.2 percent. China Vanke, the nation's biggest property developer by market value, dived 4.27 percent to close at 11.2 yuan, while Poly Real Estate, the second largest developer in China, tumbled 5.05 percent to 12.22 yuan. Cement producers were also affected. Anhui Conch Cement Co., a leading player in the sector, plunged 7.59 percent to 19.72 yuan, while Guangdong Tapai Group lost 5.79 percent to 8.46 yuan.