SHANGHAI'S stock market leveled off in morning trading as financials, property developers and metal producers consolidated before China's economic trend becomes clear.

The key benchmark Shanghai Composite Index dipped 0.2 percent to 2,399.94 points. Turnover stood at 48.5 billion yuan (US$7.7 billion).

CITIC Securities said in a note that the previous market rebound was largely driven by investor optimism that China's economy will soon bottom out with the help of more credit creation and investment in infrastructure.

The expectation of another bank reserve requirement cut didn't materialize, leaving lenders mixed in red and green. Industrial and Commercial Bank of China lost 0.2 percent to 4.38 yuan while Bank of Communications added 0.4 percent to 4.88 yuan.

Property developers and metal producers took the brunt of the decline ahead of the release of China's Purchasing Managers' Index for April next week. The flash reading was still below 50, indicating a contraction of industrial activities.

Beijing Huaye Real Estate lost 2 percent to 10.54 yuan. Beijing Vantone Real Estate fell 1.5 percent to 4.03 yuan. Aluminium Corp of China shed 1.4 percent to 7.08 yuan. Zijin Mining Industry dropped 1.2 percent to 4.33 yuan.

Source:shanghaidaily