China stocks closed mixed

Mainland China share market advanced for second day in row on Wednesday, 23 July 2014, on calming Ukraine tension and hopes the government will do more to shore up economic growth. But gain on the upside was limited on concerns about possible liquidity crunch in the market as funding availability dried up. The benchmark Shanghai Composite advanced 3.01 points, or 0.14%, to 2078.4. Trading turnover increased to 106.70 billion yuan from yesterday's 98.70 billion yuan. The People's Bank of China on Tuesday suspended first of the regular biweekly open market operations. Just 18 billion yuan in outstanding PBOC paper comes due this week, and that won't be enough to counter the impact of tax payments as well as another 11 initial public offering. Initial public offerings this week may freeze an estimated 700 billion yuan to 1 trillion yuan in funding, according to China International Capital Corp., a government-owned investment bank. Tax payments this week could see another 200 billion yuan flowing out.

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