Chinese shares slip 0.27 percent in morning trade

Chinese share prices edged 0.27 percent lower Friday during morning trading as sentiment remained weak following recent declines and broad macro-economic uncertainties, dealers said.

Shares for most of the market's heavyweights fell, but they were offset by gains by PetroChina and Sinopec, which gained after light sweet crude fell 4.41 dollars to close at 126.62 dollars per barrel overnight, the lowest close in the past two weeks, dealers said.

"Short term speculations were dominating as hot sectors shift quickly from reconstruction, telecom to futures related stocks, but none of them can attract long time interest," said Cao Yan, an analyst with Soochow Securities.

The benchmark Shanghai Composite Index, which covers both A and B shares, fell 9.28 points to 3,392.16.

Meanwhile, the government is also sending out signals to institutions to maintain stability in the market.

The official China Securities Journal cited regulators as saying it was important for fund management companies to help keep the stock market stable and stick to long-term and value investing.

"It indicates that government does not want to see the index to fall further," said Qian Qiming, an analyst with Shenyin Wanguo Securities.

The Shanghai A-share index was down 9.76 points or 0.27 percent to 3,559.13 points, while the Shenzhen A-share index lost 13.18 points or 1.21 percent to 1,071.97.

(Agencies)