CHINA’S shares ended lower yesterday after preliminary December manufacturing data showed signs of weakening and an economic meeting that concluded last Friday yielded no surprises.

    The benchmark Shanghai Composite Index ended 1.6 percent, or 35.21 points, lower at 2,160.86. The Shenzhen Composite Index fell 1.26 percent, or 13.50 points, to 1054.69.

    The Shanghai index is likely to be rangebound for the rest of 2013 as investors stay on the sidelines awaiting further details on economic reform, especially relating to the financial sector, analysts said.

    “The routine tight liquidity at the year-end is also weighing down the market, though expectations of further economic policy changes could provide catalysts for trading,” said Zhou Xu, an analyst at Nanjing Securities.

    A preliminary, or “flash,” reading of the HSBC China Manufacturing Purchasing Managers’ Index (PMI) came in at 50.5 in December, down from a final reading of 50.8 in November.

    “The decline in the flash PMI suggests growth momentum has started to weaken. We believe this trend will continue in the first half of 2014,” said Zhang Zhiwei, an economist at Nomura.

    Securities firms led declines yesterday, following weekend news that China is opening up its over-the-counter stock market to more small businesses. That fueled concerns about intensifying competition in the securities business.

    Apart from weak manufacturing data, a pledge from Chinese leaders to boost urbanization had met market expectations and placed a lid on sentiment, analysts said. At the conclusion of the annual Central Economic Work Conference on Friday, the government had highlighted the need for a “people-oriented” approach in the urbanization process and called for more sustainable development. (SD-Agencies)