SHANGHAI'S key stock index dipped in the morning session as the central bank continued to withdraw liquidity from banks.

The benchmark Shanghai Composite Index was down 0.13 percent to 2,445.57 points. Turnover fell to 18.7 billion yuan (US$2.9 billion) from yesterday morning's 26.4 billion yuan.

The People's Bank of China issued 38 billion yuan's one-year notes and conducted repurchases of 35 billion yuan yesterday, heading for a net-withdrawal for the third consecutive week. A total of 13 billion yuan's notes are set to mature this week.

Banks were mixed. Bank of China fell 0.4 percent to 2.88 yuan. China Merchants Bank rose 0.7 percent to 11.74 yuan.

Brokerages were weak. GF Securities Co dropped 1.6 percent to 24.48 yuan. Southwest Securities Co shed 1.8 percent to 8 yuan.