Chinese shares slip 0.33 percent in morning trade

Chinese share prices ended Thursday morning trade 0.33 percent lower on profit-taking in property developers and banks after a more than two percent rise in the previous session, dealers said.

They said the market was pressured by profit-taking in morning trade, while weak earnings from state-owned companies raised concerns about broader earnings prospects.

State media reported Thursday that China's 410 key state-owned enterprises posted a combined profit of 352.6 billion yuan (50.4 billion dollars) in the first four months of 2008, down 1.3 percent year-on-year.

"The report may be a herald of half-year earnings performance to be announced in June, with investors worrying that high growth may not be sustained," said Yin Hua, an analyst with Soochow Securities.

The benchmark Shanghai Composite Index, which covers both A and B shares, lost 11.38 points to 3,447.65.

Meanwhile, the National Development and Reform Commission said Wednesday that the Sichuan earthquake was not expected to have a significant impact on China's overall food supply and the consumer price index.

The comments appeared to be aimed at assuring investors that the economic fallout from the quake that has cost 68,109 lives with another 19,851 people missing, would be limited.

"Regulators are paying close attention to the market and are trying to ensure stability. Comments on the stock index futures late Wednesday and on earthquake damage are good examples," said Soochow Securities Yin.

China indicated Wednesday that stock index futures would be launched soon although analysts said the implementation of the key hedging instrument was unlikely before the Beijing Olympics in August.

The Shanghai A-share index was down 11.86 points or 0.33 percent to 3,617.47 points, while the Shenzhen A-share index shed 10.14 points or 0.91 percent to 1,099.24.

(Agencies)