SHANGHAI'S stock market retreated after brief morning gains as the pension fund authority dispelled speculation that it will channel money into the stock market.

The key benchmark Shanghai Composite Index closed 0.47 percent down at 2,365.57 points by the noon break, after the market had risen 0.81 percent in early trade. Turnover stood at 56 billion yuan (US$ 8.9 billion).

The National Council for Social Security Fund announced last night that it will manage 100 billion yuan worth of local pension funds for Guangdong Province. The national pension fund clarified today that it is entrusted to manage the funds, rather than channel them into the stock market, and it will mainly stay focused on fixed-income investments.

Following the remarks, brokers fell. Industrial Securities lost 2.4 percent to 10.9 yuan. Haitong Securities was down 1.64 percent to 8.99 yuan.

The news also pared the gains of banks in the early trade. China Merchants Bank fell 0.5 percent to 11.96 yuan. China CITIC Bank eased 0.46 percent to 4.38 yuan.

Source:shanghaidaily