China stocks drop on green car, media concerns

Chinese shares closed lower on Thursday, dragged down by weak shares related to green vehicle and media industries. The benchmark Shanghai Composite Index declined 1.40 percent, or 28.25 points, to finish at 1,993.48. The Shenzhen Component Index lost 2.13 percent, or 151.92 points, to close at 6,998.19, its lowest point in the past five years. Combined turnover on the two bourses expanded to 209.15 billion yuan (34.03 billion U.S. dollars) from 192.68 billion yuan the previous trading day. Green car stocks ended the trading day with poor performances as Goldman Sachs commented that "Tesla is not that special," saying that the share price of the leading green car manufacturer was overevaluated. Eleven related Chinese shares declined by over 5 percent on Thursday. Chinese electric vehicle pioneer BYD plunged 7.32 percent to 50.42 yuan per share. The media sector also suffered setbacks, losing nearly 5 percent, with three shares hitting the daily drop limit of 10 percent and five down over 6 percent. Bucking the trend, shares related to north China's Hebei Province, around the capital Beijing, performed strongly over rumors that the country will ramp up construction there. Oil shares also gained. Sinopec Shanghai increased 4.09 percent to 3.82 yuan per share. Shanghai Lonyer Fuels surged 9.53 percent to 13.22 yuan per share. The ChiNext Index, a NASDAQ-style board tracking China's growth enterprises, dived 3.31 percent, or 48.56 points, to end at 1,417.66 points on Thursday.