SHANGHAI stocks retreated this morning, snapping a seven-week winning streak, as financial firms and food producers dropped.

The key Shanghai Composite Index shed 3.38 points, or 0.15 percent, to 2,296.60. Turnover was 62.3 billion yuan (US$10.2 billion) by midday.

"The market fell in a downward correction after gaining for three straight days," said Shenyin &
Wanguo Securities. "The index is likely to fluctuate around the 2,300 level in a short term."

Industrial & Commercial Bank of China, the world's biggest lender, declined 0.2 percent to 4.18 percent after the Wall Street Journal yesterday reported that Goldman Sachs Group is selling its entire stake in the lender.

China Minsheng Banking Corp slipped 0.9 percent to 10.62 yuan. China Merchants Bank lost 2.4 percent to 13.53 yuan. Shanghai Pudong Development Bank Co shed 1.2 percent to 10.29 yuan.

CITIC Securities, China's biggest listed brokerage, lost 1.3 percent to 12.77 yuan. Founder Securities Co fell 1.6 percent to 7.37 yuan. Haitong Securities Co declined 1 percent to 11.41 yuan.

Inner Mongolia Yili Industrial Group Co slumped 5.5 percent to 29.13 yuan. Bright Dairy & Food Co decreased 5.2 percent to 14.49 yuan.