Shanghai key index breaks through 4,000 point mark on Thu

Shanghai key index closed more than 2% lower on Thursday from the previous trading day, breaking through the 4,000-point mark in response to drops in the U.S. and neighboring markets.

The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, slumped 2.43% or 98.86 to 3,971.26 points after fluctuating between 4,055.45 and 3,902.25 points.

Similarly, the Shenzhen Component Index on the smaller Shenzhen Stock Exchange plunged 2.82% or 405.31 to 13,943.16 points, after touching an intraday low of 13,651.83 points.

The combined turnover on the two bourses expanded a bit to RMB 139.4 billion from RMB 126.9 billion of the previous trading day.

Developers dragged the market down as they kept suffering sell-offs amid concerns over further tightening credit policy. Poly Real Estate Group<600048>, the nation's second-biggest developer dived 7.01% to RMB 24.28. China Merchants Property Development Co<000024> edged down 0.49% to RMB 41. And China Vanke Co<000002><200002>, the nation's largest listed developer, sank 1.89% to RMB 20.81.

In contrast, coalminers, banks and telecom operators made a strong performance yesterday led by three heavy weight stocks. China Unicom<600050><762>, the nation's second largest mobile phone operator, jumped 7.43% to RMB 9.69. China Merchants Bank<600036><3968> gained 2.02% to RMB 30.27 and China Shenhua Energy Co<601088><1088>, the largest coal producer, moved up 3.92% to RMB 52.02.

As a whole, losers outweighed winners by 748 to 93 in Shanghai and 601 to 75 in Shenzhen.