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Small-caps drag index down
Aggregated Source: Shanghai Daily: Business

SHANGHAI stocks fell yesterday to snap a winning streak of five days as small-cap companies dropped on a market correction after recent gains.

The Shanghai Composite Index declined 0.12 percent to 2,302.4 points.

"Small-cap stocks will go through a technical correction in the short term because they may have been overvalued due to recent gains," said Mao Sheng, an analyst with Huaxi Securities.

Investors became cautious after a number of companies listed on the growth-enterprise market were ordered by the Shenzhen Stock Exchange to release warnings of risks in a bid to cool speculative trading.

Media firms were among the biggest losers. Beijing Gehua CATV Network Co lost 1.5 percent to 7.94 yuan (US$1.29). Jiangsu Phoenix Publishing and Media Corp fell 1.7 percent to 8.80 yuan. Jishi Media Co dropped 3.2 percent to 7.35 yuan.

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Copyright Shanghai Daily: Business