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Chinese share prices closed sharply lower on Wednesday as the benchmark Shanghai Composite Index tumbled 4.92 percent, or 144.22 points to close at 2,786.34 points.

Analysts said the sharp decline of the index, which covers both A- and B-shares, came amid bubble fears and speculations that the government would unveil more measures to cool down the equity market.

The Shanghai A-share index lost 4.92 percent to end at 2,927.83 points, while the B-share index was down 5.48 points to finish at 160.68 points.

The component index of the smaller Shenzhen Stock Exchange fell 7.62 percent, or 629.40 points, to finish at 7,632. 94 on turnover of 43.71 billion yuan (US$5.62 billion).

(Xinhua News Agency January 31, 2007)