Chinese shares lower in morning trade

Chinese share prices were lower in Monday morning trade on renewed concerns over liquidity and weak first-quarter net profits from Sinopec and China Life Insurance, dealers said.

Analysts said the weak results weighed on market sentiment as renewed concerns over liquidity pressure hit financial stocks.

Sinopec slumped over three percent after the company said net profit in the first three months fell 65.8 percent year-on-year due to higher crude oil costs and price caps on domestic fuel prices.

China Life Insurance fell more than 3.5 percent after it reported first-quarter net profit was down 61 percent year-on-year on lower equity investment returns.

Industrial and Commercial Bank of China, the country's largest lender, raised fears about too much supply after it said 2.9 billion of its shares will come out of lockup period Monday.

The benchmark Shanghai Composite Index, which covers A and B shares, was down 36.08 points or 1.01 percent to 3,521.67 at 10:12 am (0212 GMT).

The Shanghai A-share index shed 37.91 points or 1.02 percent to 3,694.95 points, while the Shenzhen A-share index was down 3.66 points or 0.33 percent to 1,106.83.

(Agencies)