Shares fall as investors take profits after rally

Source: Xinhua | 2017-01-11

SHANGHAI shares dipped yesterday as investors took profits after a weeklong rally driven by macro-economic data and ownership reforms.

The Shanghai Composite Index shed 0.3 percent to end at 3,161.67 points, falling from a one-month high on Monday.

The gauge has rallied 1.81 percent since the beginning of the year, fueled by mixed-ownership reform in state-owned enterprises as well as better-than-expected macro-economic data.

Producer prices surged the most in more than five years in December as prices of raw materials soared, the National Bureau of Statistics said yesterday, further evidence of a stabilizing Chinese economy.

Carriers gained the most yesterday but shares of infrastructure companies and utilities lagged.

China Southern Airlines surged 7.38 percent to 7.71 yuan (US$1.11) as it unveiled a mixed-ownership reform to draw strategic investors such as Internet firms. China Shipbuilding Industry Co fell 2.32 percent to 7.58 yuan.