Chinese shares slip 0.12 percent in morning trade

Chinese share prices edged down 0.12 percent in Thursday morning trade as investor confidence was hit by high inflation data and lower profit forecasts by power firms, dealers said.

They said trade was erratic in the morning, with the market changing direction several times as investors still fretted about the possibility of more measures to curb inflation that hit 8.0 percent in the first quarter.

The benchmark Shanghai Composite Index, which covers A and B shares, was down 3.92 points at 3,287.68.

"Investors are still cautious amid continued policy tightening, and this was reflected in the declining turnover," said Zhang Gang, an analyst at Central China Securities.

"The government will not ease its tight monetary policy unless key macroeconomic indicators turn out to be favourable in the second quarter, when the market is likely to bottom out."

Power firms led the decline after several major utilities reported unfavourable first quarter earnings.

The Shanghai A-share Index shed 4.12 points or 0.12 percent to 3,449.74, while the Shenzhen A-share Index lost 8.76 points or 0.83 percent to 1,045.12.

(Agencies)