Shanghai stocks fall on profit-taking

Shanghai stocks fell nearly 2 percent yesterday as year-end liquidity worries sparked a massive profit-taking in financial-related counters.

The Shanghai Composite Index lost 1.98 percent to 2,972.53 points.

Xiangcai Securities said investors pouring funds into financial shares created year-end liquidity concerns which led to profit-taking on a large scale.

CITIC Securities dropped 9.06 percent to 28.20 yuan (US$4.54), and Haitong Securities lost 9.05 percent to 20.10 yuan.

Ningbo Haishun Securities Consulting saw optimism, saying that despite short-term liquidity pressure, the market will gain from the Shanghai-Hong Kong Stock Connect scheme.