2014.07.0703:10:13UTC+00Chinese stocks dip on small-company shares decline

Chinese stocks inched down as small-company shares declined on profit concerns as worries over slow economic growth wash over the market. Meanwhile. property developers tried to battle the drag, rising in the market as prospects of local government easing on home-purchase restrictions go are spread in the market.

The Shanghai Composite Index is down by 0.3% to 2,053.27, 1:12 pm, Shanghai time. Meanwhile, the ChiNext Index had a 1.9% drop, stalling gains over the past year to 31%. There is a chance that small-cap companies will come under pressure because their profits may trail the estimates of analysts for the earnings of the year’s first-half period that will begin this month according to China International Capital Corp. and UBG AG.

ChiNext Index’s largest company, Leshi Internet Information & Technology Co. and Beijing Originwater Technology Co. both declined by at least 2.5% in today’s trade. Technology shares was dragged down by Sanan Optoelectronics Co. with a 5.3% plummet. The gainers of today’s exchange were property developers China Vanke Co. and Poly Real Estate with at least a 2.4% increase.

Analyst at Everbright Securities Co. Zeng Xianzhao commented that there is worry over the looming company earnings due to the fact that Asia’s biggest economy didn’t perform well for the first half of the year that’s why investors aren’t excited about company earnings. Xianzhao adds that small-company shares are given the spotlight because there’s a good chance that their growth may not match their current valuations.