Chinese shares close lower Monday, venture capital surges

BEIJING, Nov. 5 (Xinhua) — Chinese shares fell Monday with the liquor industry leading the decline, while venture capital-related firms surged.

The benchmark Shanghai Composite Index lost 0.41 percent to close at 2,665.43, while the Shenzhen Component Index closed 0.36 percent lower at 7,839.08.

Combined turnover on the two bourses stood at 393.6 billion yuan (about 57.06 billion U.S. dollars) on Monday, down from 451.28 billion yuan the previous trading day.

The liquor industry, having led the gains for three trading days in a row, fell the most on Monday with the sub-index down 2.85 percent. Kweichow Moutai, the country’s benchmark liquor producer, slumped 4.02 percent to 575.8 yuan. The household brand Wuliangye Yibin lost 3.61 percent to 51.75 yuan.

Bucking the downward trend, venture capital-related shares saw a 4.99 percent rally on Monday, especially for those located in the Yangtze River Delta. The Shanghai-based technology VC firm Zhangjiang Hi-tech Park Development Co. Ltd and Nanjing Gaoke Co. Ltd both increased by the daily limit of 10 percent, ending at 10.79 and 7.43 yuan respectively.

The tailwind for VC stocks came after the country announced a plan to launch a science and technology innovation board at the Shanghai Stock Exchange and experiment with a registration system for listed companies.

The ChiNext Index, China’s NASDAQ-style board, gained 0.04 percent to close at 1,348.88.

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