Chinese shares close down 2.09 percent

Chinese share prices closed down 2.09 percent on Thursday as investor confidence was hit by high inflation data and lower profit forecasts by power firms, dealers said

They said trade was erratic in the morning as the market changed direction several times, but the downward trend accelerated in the afternoon as the key index hit a new intra-day low at 3,180.20 following its peak last October.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, dropped 2.09 percent, or 68.86 points, to 3,222.74 at 3pm.

Losers in the Shanghai market outnumbered gainers 758 to 79, while 17 were unchanged.

The Shenzhen Composite Index, which covers the mainland's smaller stock market, was down 3.24 percent, or 32.52 points, to 971.66.

The Shanghai A-share Index lost 72.19 points or 2.09 percent to 3,381.68 on turnover of 62.3 billion yuan. The Shenzhen A-share Index fell 34.36 points or 3.26 percent to 1,019.52 on turnover of 27.5 billion yuan.

(Agencies)