SHANGHAI'S key stock index dipped slightly in the morning session today as oil-related shares plunged due to record-high prices in the world market.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, was down 0.22 percent, or 7.42 points, to 3,406.49 at 11:30am.
Losers in the Shanghai market outnumbered gainers 475 to 345, while 33 were unchanged.
The Shenzhen Composite Index, which covers the mainland's smaller stock market, slipped 0.24 percent, or 2.55 points, to 1,041.65.
Sinopec, the country's biggest oil refiner, slumped 3.64 percent to 11.39 yuan (US$1.63) while PetroChina, the nation's biggest oil maker and market component in Shanghai, shed 0.81 percent to 17.18 yuan.
Sinopec is offering to sell crude oil shipments to cut stockpiles as its refining losses widen because of government orders to sell fuel at below-market prices.
US crude increased US$2.37 at US$110.87 a barrel after peaking at US$112.21 and eclipsing the previous record of US$111.80 hit on March 17. London Brent settled US$2.13 higher at US$108.47 a barrel after hitting an all-time high of US$109.50.
Airlines were also hit by rising oil prices.
China Southern Airlines, the nation's biggest carrier by fleet size, decreased two percent to 14.68 yuan while Shanghai-based China Eastern Airlines, the third largest, fell 0.43 percent to 11.60 yuan.
On the positive side, Industrial & Commercial Bank of China, the nation's biggest listed lender, climbed 1.33 percent to 6.09 yuan. The lender expects first-quarter profit to soar more than 50 percent as China's economic growth boosts demand for loans and fee-based services. Net income was 18.71 billion yuan a year earlier.
China Shenhua Energy Co, the nation's largest coal producer, added 2.38 percent, to 43.02 yuan. The company may plan to acquire assets worth 11 billion yuan from its parent company.
China Coal Energy Co, the nation's second-largest coal producer said profit climbed 90 percent to 6.02 billion yuan last year because production rose and prices gained. The company advanced 2.29 percent to finish the session at 17.45 yuan.
Citic Securities Co, China's largest brokerage by market value, was suspended from trading in the morning. The broker said first-quarter profit probably more than doubled because it booked earnings from more units. Net income was 1.25 billion yuan in the first quarter of 2007.