Shanghai shares retreat for the third consecutive week

SHANGHAI stocks closed down today with sentiment dampened by S&P's downgrading of China's sovereign credit rating by one notch.

The benchmark Shanghai Composite Index dipped 0.16 percent to 3,352.53 points on Friday with turnover falling to 207 billion yuan(US$31 billion). The index saw the third weekly decline with a loss of 0.03 percent this week.

S&P downgraded China's sovereing credit rating by one notch yesterday, citing "a prolonged period of strong credit growth has increased China's economic and financial risks."

Resource shares continued to drag down the index amid concern that a stronger dollar might hurt commodity prices.

Jiangxi Copper Co lost 0.93 percent to 18.18 yuan. Zhongjin Gold Mining Co was down 0.55 percent to 10.84 yuan. Yunnan Tin Co declined 2.58 percent to 14.72 yuan.

5G communication and network equipment related shares were among the gainers amid prospects that government stimulus plan would boost spending on telecommunications equipments and service providers. Zhongtong Guomai Communication Co surged the daily limit of 10 percent. ZTE Corporation advanced 6.93 percent to 26.70 yuan and Shenzhen MeiG Smart Technology Co also hiked 10 percent to 35.64 yuan.

Financial shares posted mixed results. China Life Insurance advanced 1.63 percent to 28.14 yuan. China Minsheng Banking Corp was down 0.61 percent to 8.18 yuan. Guoyuan Securities retreated 1.48 percent to 13.95 yuan.

Galaxy Securities wrote in a research note today that the market is generally cautious over macroeconomic situation and the liquidity and the index could undergo further adjustment