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Chinese shares fell 0.34 percent on Monday as investors, unsure about the outcome of the ongoing parliament session in Beijing, took quick profits amid thin trading. The benchmark Shanghai composite index closed at 1,288.955 points, after slipping 0.32 percent in the morning.
"Investors are holding back their money," said Ji Lijun, an analyst with Shanghai Securities. "They are waiting for new policies to come out from the National People's Congress." China's parliament - the National People's Congress - kicked off its annual session in Beijing on Sunday to map out the country's economic development plans for the next five years.
Sinopec, Asia's largest refiner, was one of the most active stocks of the day. It closed down 1.13 percent at 5.23 yuan, extending a 0.57 percent dip in the morning.
China Minsheng Banking Corp Ltd, the country's first private lender, shed 0.8 percent to 4.99 yuan. Bucking the trend, top Shanghai-listed lender China Merchants Bank, climbed 0.48 percent to 6.31 yuan.
China's benchmark index has been Asia's worst performer over the past two years but started to rebound this year, rising more than 11 percent so far, partly buoyed by Beijing's repeated pledges to boost the markets.

Copyright Reuters, 2006

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