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DC Contactor China's main stock indices fell Wednesday on the heavy selling of telecommunications shares following their recent gains. The benchmark Shanghai Composite Index dropped 66.49 points, or 1.9 percent, to 3,369.91. The Shenzhen Composite Index lost 1.3 percent to 1,021.36. Telecom companies extended losses as investors continued to cash in on gains made the past few weeks ahead of a major industry restructuring. Details of the plan were announced Monday. China United Telecommunications tumbled 8.9 percent to 8.74 yuan. From April 22 to Tuesday, the stock had risen 37 percent to 10.71 yuan. Computer and telecom services provider Bright Oceans Inter-Telecom lost 7.9 percent to 14.92 yuan and equipment maker Wuhan Yangtze Communications shed 6.4 percent to 9.58 yuan. "Early investor enthusiasm for telecom firms immediately fizzled out after the sector's overhaul was announced, reflecting the broader stock market's gloom," said Wu Feng, an analyst at TX investment. Despite prevailing pessimism, declines have been limited by the conviction among many investors that regulators will move to support the market if share prices drop much lower, analysts said. China Merchants Bank fell 3.1 percent to 28.77 yuan on lingering concerns that the lender's capital base will be weakened by its US$2.47 billion takeover of Hong Kong's Wing Lung Bank. Property developers advanced on expectations that they will likely benefit from the reconstruction of areas devastated by last month's earthquake in Sichuan province. China Merchants Property Development rose 6.5 percent to 19.70 yuan. China Vanke gained 4.7 percent to 20.50 yuan. In currency dealings, the dollar's advance overnight in international markets helped push the Chinese yuan lower. The dollar was at 6.9440 yuan around 0730 GMT on the over-the-counter market, up from Tuesday's close of 6.9250.