Shanghai shares fall from highest in 2 years
SHANGHAI stocks dropped from their highest in nearly two years today amid profit taking in financial and consumer shares.
The Shanghai Composite Index shed 0.99 percent to close at 3,523 points.
Liquor makers and financial companies declined after last week's gain. Industrial Securities lost 2.63 percent and China Life Insurance shed 2.70 percent. Kweichow Moutai fell 5.26 percent.
Consumer shares and transport shares have gained significantly since the beginning of January and investors would cash in to take profits, according to a research note by Essence Securities' chief strategist Chen Guo.
Meanwhile, steelmakers and coal producers gained on strong investor demand and the former's better-than-expected earnings.
Nanjing Iron & Steel Co jumped 4.36 percent to 5.50 yuan while Yanzhou Coal Mining Co surged 6.03 percent to finish at 18.30 yuan.