China shares slip 0.7 pct as real estate stocks pull back

SHANGHAI, April 3 Thu Apr 3, 2014 3:11am EDT

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SHANGHAI, April 3 (Reuters) - China shares dropped on Thursday as property stocks were hit by profit-taking following a jump the previous day on media reports that some cities may relax restrictions on home buying.

The Shanghai Composite Index ended down 0.7 percent at 2,043.7 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings fell 0.7 percent.

The CSI300 property subindex lost 1.8 percent, erasing most of Wednesday's gain, with Beijing Vantone Real Estate Co Ltd losing 9.2 percent and Oceanwide Real Estate Group Co Ltd down 6.4 percent.

Analysts said that most of Wednesday's gains had been speculative and that market conditions did not support a sharp rise in property shares.

But rail companies rose on news of government plans to increase the total length of tracks laid this year by 18 percent compared with 2013, and speed up rail projects that have already been approved.

China Railway Construction Corp Ltd gained 0.7 percent and China Railway Erju Co Ltd rose 0.4 percent. (Reporting By Natalie Thomas; Editing by Chris Gallagher)

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