1st LD-Writethru: Chinese shares drop Wednesday, despite technology rises

Chinese stocks fell slightly on Wednesday, led by financial and property shares, though the technology sector rallied.

The benchmark Shanghai Composite Index closed down 0.12 percent to end at 3,085.88 points.

The Shenzhen index closed 0.09 percent higher at 10,760.44 points. The ChiNext Index, tracking China's NASDAQ-style enterprises, was up 0.83 percent to close at 2,192.17 points.

Turnover on the two bourses shrank slightly to 449.1 billion yuan (67.62 billion U.S. dollars) from 460.1 billion yuan the previous trading day.

The financial sector led the Wednesday slide. The People's Bank of China (PBOC), the central bank, starts a 14-day 50 billion yuan reverse repurchase agreement on Wednesday, the first since February. Analysts believed PBOC is being more cautious with policy tools, avoiding a broader stimulus.

Technology companies were among Wednesday's top performers, particularly shares in 4G and virtual reality (VR) technology.

VR technology shares climbed on reports that Google will further investment in VR and launch its own VR platform Daydream in the coming weeks.

China Telecom on Tuesday reported a 6.3 percent growth in net profits for the first half of the year, largely due to more 4G subscriptions. There were 90.1 million high-speed wireless 4G terminal users, a net increase of 31.64 million users year on year. Endi