Chinese shares retreat ahead of British referendum result

- Chinese stocks dropped moderately Thursday as investors were cautious ahead of the referendum on whether Britain will remain inside or exit the European Union (EU).

The benchmark Shanghai Composite Index edged down 0.47 percent to 2,891.96 points. The smaller Shenzhen Component Index closed 0.41 percent lower to 10,255.27.

Combined turnover on the two bourses rose to 523.6 billion yuan (about 79.7 billion U.S. dollars) from the previous day's 486 billion yuan.

The ChiNext Index, China's NASDAQ-style board of growth enterprises, lost 0.34 percent to close at 2,137.49 points.

The British polls opened Thursday morning local time. The outcome is expected to be officially announced at Manchester Town Hall in the early hours of Friday.

Analysts say that if Britain leaves the EU, it may result in the depreciation of the British pound and hurt the nation's investment and trade.

Moreover, the global financial market will feel the pressure and China's stock market may drop 5 to 10 percent, according to China Securities.

PetroChina, the country's largest oil and gas producer, dropped 0.55 percent to 7.18 yuan. Poly Real Estate, a leading developer in China, dropped 1.51 percent to 8.46 yuan.

source : xinhua