Although B-share prices gained continued support from mainland buying of Zhejiang Southeast Electric Power, following its annual report on Tuesday, most B shares drifted lower in cautious sentiment and thin trade, they said.

The A-Share Index declined 14.726 points to close at 1,923.124.

Turnover was weaker at 12.63 billion yuan, compared with 14.29 billion yuan on Tuesday.

The B-Share Index closed 0.343 point lower at 42.112 points.

Turnover improved to US$4.35 million from $3.78 million previously.

Qunyi Securities dealer Wu Jian said the launch of two more IPOs added to investor caution, while confidence had been weak in recent days amid a lack of positive leads.

However, institutions have continued to support A-share prices largely through strong buying of several leading stocks, although institution-led buying also generated sharp gains among several high-technology stocks on Tuesday.

'This doesn't mean hi-tech stocks have finished correcting. It just means institutions have been trying to use the stocks to stop indices dropping. But this support only lasted for a day and now the institutions are just focusing on the low-priced, large-cap shares again,' a broker said.

Shenzhen A shares closed lower despite continued institutional support for counters with large index weightings.

Although institution-led buying generated strong gains among large-cap stocks, particularly in the steel sector, the market generally drifted lower, dealers said.

Shenzhen's A-Share Index finished 5.3 points easier at 607.29.

Turnover dropped to 13.83 billion yuan from 16.88 billion yuan in Tuesday's session.

Although B-share prices closed slightly lower, turnover was thin amid limited interest by mainland investors, while foreign investors remained sidelined.

The B-Share Index shed 0.43 point to close at 90.43 points.

Turnover shrank to HK$34.75 million from $47.09 million on Tuesday.