Stocks continue their declines on Tuesday

Shanghai stocks continued to fall on Tuesday, led by declines in mining and telecommunication firms.

The Shanghai Composite Index lost 0.6 percent to close at 3,013.05 points.

Mining companies, farming as well as new material stocks were also among the biggest decliners.

Investors locked in profits from earlier gains in the telecommunication sector which had been surging since last week.

Guotai Junan Securities said in a note that stocks with large cumulative gains in the previous period showed a significant downward trend. The company also said that short-term trading volume was at a relatively high level and market fluctuations would be magnified.

Eastern Communications Co Ltd declined 3.06 percent to 21.23 yuan (US$3.02) and Zhejiang Sunoren Solar Technology Co Ltd fell 3.73 percent to 7.99 yuan.