1st LD-Writethru: Chinese shares close lower on investors' profit taking

Chinese stocks closed lower on Friday, with the benchmark Shanghai Composite Index down 0.86 percent, at 3,012.82 points, as investors took profits following the previous day's bounce.

The smaller Shenzhen index closed 0.72 percent lower at 10,709.07 points.

Combined turnover on the Shanghai and Shenzhen bourses stood at 539.8 billion yuan (80.97 billion U.S. dollars), down from 556.9 billion yuan the previous trading day.

The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, lost 0.67 percent to close at 2,250.00 points.

The liquor sector was among the losers while graphene, satellite navigation and defense industry shares were among the biggest gainers.

HOLSIN Engineering Consulting Co. plunged 10 percent to close at 69.100 yuan. In contrast, graphene companies led the rally, with shares of Qitaihe Baotailong Coal&Coal Chemicals Public Co. soaring by the 10-percent daily limit to finish at 6.460 yuan.

Analysts said it is common for investors to take profits following a bounce, a phenomenon which weighed down the Shanghai index.

On Thursday, the benchmark Shanghai Composite Index closed up 0.37 percent at 3,039.01 points, led by communication and transportation shares after encouraging government policies.

The Chinese government on Wednesday announced a five-year plan for technological innovation to help foster new engines for the economy.

Approved at an executive conference of the State Council, the plan will facilitate the rise of new sectors and propel ongoing economic upgrades.

Quantum communication and precision medicine, the seed industry, clean coal, 5G technology and smart robots were singled out as particular areas of focus. Endi