Chinese shares were slightly lower Thursday after a two-day rally amid news reports that major state banks might sell new shares, according to AP. The benchmark Shanghai Composite Index slipped 4.39 points, or 0.1 percent, to close at 3,046.09, while the Shenzhen Composite Index for China's smaller second exchange edged up 0.1 percent to 1,172.03. Investors were concerned that if banks raise new capital following a lending surge last year it might dilute existing shareholders, analysts said. «The market was enthusiastic with industries spurred by recent government policies, but some long-term concerns, such as banks' refinancing problems, were still there,» said Huang Xiangbin, an analyst for Cinda Securities in Beijing. Bank shares lost ground after news reports said China's two biggest commercial lenders were studying plans for share sales. Industrial & Commercial Bank of China Ltd. gave up 0.4 percent to 4.86 yuan while China Construction Bank Ltd. shed 0.9 percent to 5.56 yuan. Real estate developers extended gains after a land auction in Beijing this week broke price records. Poly Real Estate Group, China's second-biggest developer, added 1.4 percent to 20.68 yuan, while rival China Vanke Ltd. rose 1.1 percent to 9.54 yuan. Cable television and technology-related shares rose after state media cited the industry minister as saying China may start trials in June of systems that integrate phone, Internet and television services. Insigma Technology Co., a maker of computer networking equipment, soared by the 10 percent daily limit to 7.98 yuan. Cable TV operator Beijing Gehua CATV Network Co. jumped 1.9 percent to 15.49 yuan. In currency markets, the yuan strengthened to 6.8265 to the U.S. dollar, up from Wednesday's close of 6.8270.
