Chinese shares down 1.6 percent in Friday morning

Chinese share prices were down 1.64 percent in Friday morning trading after Beijing hiked fuel and electricity prices across the board, dealers said.

Shares opened higher but soon moved back into negative territory in the wake of the announcement late Thursday that petrol and diesel prices would go up by as much as 18 percent.

Beijing's move split the market. Oil majors and power firms rose due to the long-expected relaxing of its price controls, but airlines slumped on rising operations costs.

The benchmark Shanghai Composite Index, which covers A and B shares, was down 45.03 points or 1.64 percent to 2,703.85.

The Shanghai A-share index was down 47.10 points or 1.63 percent to 2,836.79, while the Shenzhen A-share index fell 26.59 points or 3.25 percent to 790.48.

(Agencies)