China B-shares closed lower on profit-taking following yesterday's 7.63 pct surge in the key index, with the government yet to confirm a rumored economic stimulus package, dealers said.

Huaxin Cement and retailer Shenzhen International Enterprise led the declines.

The Shanghai B-share Index fell 6.01 points or 3.69 pct to 156.90, while the Shenzhen B-share Index lost 11.28 points or 2.89 pct to 379.66.

"Despite the absence of confirmation from the government, the decline was relatively small, as there is still the possibility of further government support," said a Shanghai-based analyst who asked not be identified.

"Turnover thinned late in the session, indicating that investors continued to be on the sidelines, awaiting clear direction for government policy," the analyst noted.

Turnover linked to the Shanghai Composite Index fell to 51.91 bln yuan from 59.04 bln yesterday.

In Shanghai, Huaxin Cement tumbled 9.05 pct to 1.075 usd, while Jinjiang International Trave shed 5.23 pct to 0.816 usd. Jiangsu Xincheng Real Estate was down 5.71 pct at 0.380.

Zhenhua Port Machinery, the heaviest weighted stock on the Shanghai B-share market, lost 6.64 pct to 0.970 usd.

Garment maker Sanmao Enterprise added 5.08 pct to 0.496 usd, extending a 10 pct jump in the previous session.

In Shenzhen, Shenzhen International Enterprise slid 7.67 pct to 2.89 hkd, while Shandong Airlines fell 4.44 pct to 3.01. Yantai Changyu Pioneer Wine slipped 3.93 pct to 41.10 hkd.

China Vanke, the country's top property developer by market value, was down 3.94 pct at 6.83 hkd.

Property firm Hainan Pearl River Holdings continued to rise. It closed up 3.20 pct at 2.26 hkd after rising by the 10 pct daily limit yesterday.

The FTSE/Xinhua China B 35 Index was down 204.46 points or 3.50 pct at 5,630.09.

The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed down 91.57 points or 3.63 pct at 2,431.72.

(1 usd = 6.8 yuan; 7.8 hkd)