Shanghai shares dip amid subdued sentiment

Shanghai shares dipped today as investors took profit while trading sentiment was subdued despite a survey showing China's factory activity turned out stronger than expected.

The Shanghai Composite Index dipped 0.08 percent to close at 3,361 points. The index recorded a 2.7 percent increase for August, the biggest monthly gain in nine months and the third consecutive monthly climb.

Financial shares declined, with the Agricultural Bank of China losing 2.08 percent to 3.77 and China Merchants Bank shedding 1.51 percent.

Airline shares retreated from earlier rallies, with Air China falling 1.59 percent and China Eastern Airlines shedding 1.27 percent to 6.98 yuan.

Trading sentiment was largely subdued despite the faster-than-expected expansion in China’s manufacturing activity in August amid an improved supply and domestic demand, according to the National Bureau of Statistics today.

Steel makers, however, gained. Xinyu Iron & Steel Co surged 8.27 percent while Lingyuan Iron & Steel Co jumped by the daily limit of 10 percent. Liuzhou Iron & Steel climbed 5.63 percent to close at 7.51 yuan.