Shares fall as investors take profits

Shanghai stocks fell today as investors took profits in telecommunication shares amid optimism about China's reform of state-owned enterprises.

The Shanghai Composite Index edged down 0.49 percent to close at 3,271.51 points.

Telecom, computer and consumer shares were among the biggest decliners today. The telecom sector dropped more than 1 percent, led by the decline of China Unicom Network Communications Ltd.

China Unicom fell 6.7 percent to 8.36 yuan (US$1.26). Shanghai Athub Co Ltd lost 3.40 percent to 43.18 yuan.

Investor sentiment got a lift from China's reform of its SOEs. Haitong Securities said in a note today that shares related to SOE reform were expected to grow and and further help boost the market.

The Securities Times newspaper said today that the central government has already selected SOEs for its third round of the mixed ownership reform program.

"The National Development and Reform Commission has selected the third batch of enterprises," said Meng Wei, NDRC spokesperson.