Shanghai stocks drop after a three-day rebound

Shanghai stocks dropped today as investors took profit in blue chips such as banks and securities.

The Shanghai Composite Index lost 0.21 percent to 3,237.98 points after a three-day rebound.

Investors remain wary as several high-tech giants reported losses for their mid-year performance while the central government has reiterated tightening regulations to dampen speculation, reported Sinolink Securities Co.

The share drops were led by banks and securities. The banking sector shrank 1.31 percent following an eight-day growth. Securities fell 0.98 percent after it jumped 6.08 percent on Wednesday, its biggest daily increase since the year beginning.

Wuxi Rural Commercial Bank Co lost 2.92 percent to 11.29 yuan (US$1.67), while Zheshang Securities Co declined 2.75 percent to 16.24 yuan.

Over the whole week, however, the index gained 0.48 percent, notching a five-week increase. Industrial sectors such as coal and steel bolstered the stock market following news that China has cut steel overcapacity ahead of schedule and most coal plants made profits after the supply cut.

China’s continuous industrial upgrading and supply control would help attract funds in these sectors to boost economy, Industrial Securities Co said in a note.