Chinese shares extend losses on Wednesday

Chinese shares continued to extend losses on Wednesday with around 60 stocks dropping by more than 9 percent. The benchmark Shanghai Composite Index closed down 1.81 percent, or 40.34 points, to finish at 2,193.07, and the Shenzhen Component Index dropped 1.81 percent, or 157.48 points, to finish at 8,542.87. Combined turnover on the two bourses shrank to 278.5 billion yuan (45.67 billion U.S. dollars) from 287.5 billion yuan the previous trading day. The ChiNext Index, tracking China's NASDAQ-style board of growth enterprises, dropped 3.93 percent to close at 1,335.10 points. Traders attributed the decline to rising fears about an impending resumption of initial public offerings in the stock market, a looming deadline for a U.S. debt deal, and profit-taking in the media and entertainment sector and the free trade zone-related sector. The index tracking media and entertainment dived 7.57 percent, with Beijing Enlight Media Co. Ltd and two other stocks dropping by the daily limit of 10 percent. Shares related to Shanghai's free trade zone were also among the biggest losers. Shanghai Zhangjiang Hi-tech Park Development Co. Ltd dived 9.90 percent to 8.74 yuan per share, and Shanghai Waigaoqiao Free Trade Zone Development Co. Ltd plunged 9.52 percent to 46.19 yuan per share. Bucking the trend, the environmental protection sector rose after the government announced a subsidy plan to help coal-fired companies reduce emissions.