SHANGHAI'S key stock index was flat in the morning session as losses of banks overshadowed gains of metal producers.

The benchmark Shanghai Composite Index edged down 0.03 percent, or 0.78 points, to 2,903.34. Turnover rose to 70.2 billion yuan (US$10.5 billion) from yesterday morning's 60.4 billion yuan.

The Shenzhen Composite Index, which tracks the smaller mainland market, was up 0.05 percent to 1,349.84.

Metal producers led the gainers as prices of copper and aluminum futures gained on Shanghai market following higher prices overseas. Jiangxi Copper Co rose 2 percent to 42.23 yuan. Aluminum Corp of China similarly gained 2 percent to 10.58 yuan.

Oil producers were mixed after the government raised price of gasoline and diesel by up to 4 percent today to reflect higher crude prices on the international market. PetroChina, China's largest oil producer, was unchanged at 11.52 yuan. China Petroleum & Chemical Corp added 0.6 percent to 8.31 yuan.

Banks were weak on concerns profits could be hurt as China's central bank is reportedly considering controlling lending based on banks' credits. Bank of China dipped 0.3 percent to 3.26 yuan. China Construction Bank lost 0.4 percent to 4.70 yuan.