Shanghai shares fall after week-long gain

Profit taking and investors worried new IPOs might siphon liquidity in the market
Shanghai shares fall after week-long gain

SHANGHAI stocks fell today after a week-long gain amid profit taking whiles investors worried that new shares might siphon liquidity.

The Shanghai Composite Index dipped 0.77 percent to 3,390.34 points after falling as much as 1.7 percent in the morning session.

The China Securities Regulatory Commission said late Friday that nine companies have been approved to launch initial public offerings that seek to raise a total of 9.5 billion yuan, more than double the average amount of funds raised in past weeks, leading to fears of tighter liquidity.

Consumer and resource shares led the decline. Jiangxi Copper Co lost 3.63 percent to 17.53 yuan while Yunnan Copper shed 4.97 percent and Zhongjin Gold Co fell 2.05 percent to 10.02 yuan.

Brokerages also declined, with Guoyuan Securities losing 3.06 percent to 12.35 yuan and Citic Securities dropping 2.18 percent to 17.47 yuan. Changjiang Securities sank 3.30 percent to 9.07 yuan.

Liquor makers such as Kweichow Moutai retreated 4.24 percent after gaining nearly 15 percent last week following its positive quarterly results, and Wuliangye Yibin Co fell 1.46 percent.

Special Reports