Most mainland stocks fell on speculation 2009's rally has outstripped the prospects for earnings growth with the benchmark Shanghai Composite Index trading at the most expensive relative to earnings in 15 months.
Jiangxi Copper Co, the country's biggest producer of the metal, slid 1.7 percent after more than doubling this year and Aluminum Corp of China Ltd dropped 2.4 percent.
China Pacific Insurance (Group) Co rallied 6.4 percent after the Shanghai Securities News said the company may list shares publicly in Hong Kong next year.
"Shares have risen to an expensive level and everyone is expecting a correction to take place soon," said Wang Zheng, a fund manager at Jingxi Investment Management Co in Shanghai. "That's why buying has become more and more cautious."
About five stocks fell for every three that rose on the Shanghai Composite, which added 2.75, or 0.1 percent, to 2925.05 at the close, its highest since June 2008. The measure has surged 61 percent this year, the world's third-best performer.
Shares on the index trade at 29 times earnings, the most expensive since March 2008, weekly data compiled by Bloomberg show.
Source:China Daily/Agencies
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