Chinese shares fall 1.57 percent in morning trade

Chinese share prices fell 1.57 percent by midday Monday as losses on Wall street and other regional markets hit investor sentiment, dealers said.

Investors were taking cues from the blue-chip Dow Jones Industrial Average, which tumbled 1.83 percent on Friday, traders said.

"The US market will still exert influence on local shares," Guo Yong at GF Securities told Dow Jones Newswires.

"The market is lacking confidence. People have been waiting for institutional buyers building new long positions, but this has not happened yet."

China's oil majors were among the worst hit by profit taking, giving up nearly all their gains following the government's fuel price hike announcement last week.

The benchmark Shanghai Composite Index, which covers both A and B shares, fell 44.37 points to end the morning at 2,787.36.

Shang Fulin, chairman of the China Securities Regulatory Commission, said over the weekend that regulators should act to ensure the healthy and stable development of the stock market.

But analysts said Shang's statement may not have an immediate effect on the market as investors were expecting concrete measures, not talk.

The Shanghai A-share index was down 46.70 points, or 1.57 percent, to 2,924.23 points, while the Shenzhen A-share index shed 3.05 points, or 0.37 percent, to 828.87.

(Agencies)