At the close, the Shanghai Composite index was down 0.36 per cent at 3,584.21 and the blue-chip CSI300 index 0.66 per cent lower, with both indexes reversing intraday gains.
The consumer staples sector gave up most of its gains for the day to finish just 0.09 per cent higher, down from a 1.46 per cent rise at midday. The healthcare sub-index fell 1.25 per cent.
Healthcare and consumer firms have swung between losses and gains this week as investors weigh the impact of Beijing’s announcement that married couples can have up to three children.
The wobbly performance of consumer shares followed a private sector survey that showed a slower expansion in China’s services sector activity in May.
Banks were among the biggest drags on the CSI300 index, with a sub-index tracking the sector down 0.71 per cent on the day. The CSI300 financial sector sub-index fell 0.56 per cent.
The lower close came a day after China’s margin trading balance amount, an indicator of investor sentiment, hit its highest level since July 2015, as investors borrowed more to purchase shares amid a stock rally.
The smaller Shenzhen index ended down 0.34 per cent and the start-up board ChiNext Composite index was 1.272 per cent weaker.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.21 per cent, while Japan’s Nikkei index closed up 0.39 per cent.
At 07:07 GMT, the yuan was quoted at 6.3926 per U.S. dollar, 0.17 per cent weaker than the previous close of 6.3815 as regulators continued to make moves interpreted as warnings to speculators betting on a stronger Chinese currency.
