Chinese shares reverse gains to end down, rail sector slumps

viernes 7 de noviembre de 2014 03:14 GYT

SHANGHAI Nov 7 (Reuters) - Chinese shares ended lower on Friday, losing earlier solid gains after a slump in railway-related stocks following news the Mexican government had revoked a contract for a high-speed rail line that was to have been built by a Chinese consortium.

Analysts said indexes had also faltered at resistance points in the afternoon. The Shanghai Composite Index ended down 0.3 percent at 2,419.1 after hitting its highest level since May 2012 at one stage, led by strength in the brokerage sector.

The CSI300 of leading Shanghai and Shenzhen A-shares fell 0.2 percent.

Mexican President Enrique Pena Nieto revoked the contract for a multi-billion-dollar high-speed rail link from the Chinese-led consortium after its uncontested bid drew complaints from lawmakers.

Shares in consortium leader China Railway Construction Corp Ltd shed 4.9 percent and China Railway Group Ltd slumped 4.5 percent. (Reporting by Shanghai Newsroom and Chen Yixin; Editing by Alan Raybould)