SHANGHAI'S key stock index fell to a 25-month low yesterday after investor confidence was dampened by falling corporate profits and pressure from non-tradable shares.

The Shanghai Composite Index fell 0.52 percent, or 9.01 points, to 1,719.77 points, after reaching an intraday low of 1,702.98. It was the lowest closing since September 26, 2006 when the index ended at 1,712.64.

Losers outnumbered gainers 581 to 266 while 31 remained unchanged. Turnover in the local market shrank slightly to 23.74 billion yuan (US$3.49 billion), compared with 25.9 billion yuan on Friday.

"Investor confidence has been dampened as companies posted an obvious slower growth in the first nine months. Concerns are growing over the economic slowdown despite the government's attempt to sustain a stable growth," Gold Sun Securities Co said.

Brokerages tumbled on speculation that short selling and margin trading would be postponed. The China Securities Regulatory Commission said earlier it would not receive applications for short selling and margin trading business before December 1. Brokerages had expected to start the new business as soon as the end of this month.

Haitong Securities Co, the country's largest listed brokerage by market value, led the brokerages down as the lock-up period of its more than 1.2 billion yuan shares will expire later this month. Its shares plunged by the 10 percent daily cap to 16.60 yuan. Sinolink Securities Co lost 7.19 percent to 23.11 yuan while CITIC Securities Co tumbled 6.33 percent to 16.71 yuan.

Huang Zefeng from Haitong Securities Co said shares would go through ups and downs amid a downward trend for November due to shrinking corporate profits and pressure from non-tradable shares.

Around 100 billion yuan in non-tradable shares are to be unlocked this month, 14.4 billion yuan more than that of last month.