Shares in Shanghai dropped Thursday as most of investors chose to keep on sidelines.

The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, decreased 0.59 percent to 1,549.06. The A-share Index also edged down 0.59 percent to 1,624.57 and the B-share Index dropped 0.45 percent to 104.13.

"Today (Thursday) the market dropped after seeing a two-day straight rise," said Guo Sheng, analyst with Shanghai Securities Consulting Co Ltd. "Investors determined to adopt a wait-and-see attitude in the market to see whether the central government will carry out new tightened measures to cool its economic growth."

With no good news to strengthen their confidence in the market, investors would rather shun away from the market, Guo said, adding that the shrinking trading value is an indication of that.

Trading value fell to 7.06 billion yuan (US$850.6 million) from 9.59 billion yuan on Wednesday.

Around 70 percent of the firms listed in the Shanghai bourse slid yesterday with no sector standing out with huge movement.

Zhejiang Province-based Ningbo Marine Co slumped to 6.38 yuan by hitting the 10 percent daily trading cap. Investors dashed to sell stocks of the firm since Ningbo Marine said in a statement yesterday that it may experience a huge loss on its investment in a securities firm.

Beijing-based Cred Holing Co plummeted to 5.06 yuan by hitting the 10 percent daily trading cap. Liaoning Province-based Dalian Thermal Power Co finished at 8.27 yuan, a drop of 5.27 percent.

(eastday.com May 21, 2004)