Chinese shares fall 1.10 percent in morning trade

Chinese share prices fell 1.10 percent by midday Thursday as weak performance in heavyweight oil majors dragged down the key index, dealers said.

Shares opened higher as market sentiment improved after rising for two consecutive days, while the US Federal Reserve's decision to keep interest rates unchanged also lifted sentiment.

But oil majors were hit again by profit-taking, giving up early gains.

The benchmark Shanghai Composite Index, which covers both A and B shares, fell 31.99 points to end the morning at 2,873.02.

"The market is still in a consolidation mode," Xu Yan at Shenyin Wanguo Securities told Dow Jones Newswires.

"Some institutional investors think it's a good selling point as they think the market will remain under pressure, due to lower corporate profitability."

The Shanghai A-share index was down 33.79 points, or 1.11 percent, to 3,013.75 points, while the Shenzhen A-share index shed 4.04 points, or 0.46 percent, to 875.20.

(Agencies)