Index dips on correction

SHANGHAI stocks ended lower yesterday amid a market correction.

The Shanghai Composite Index edged down 0.03 percent to close at 2,275.34 points.

China Merchants Bank said in a weekly report that although market confidence is recovering due to China's stabilizing economy, "investors seem to adopt a more cautious stance after the market's recent surge."

Some analysts said the market performance was also hit by a massive outflow of capital.

The yuan-denominated- A-share market saw a capital- outflow of 30 billion yuan (US$4.8 billion) in December, leaving 1.02 trillion yuan invested in the stock market at the end of last year, according to a report compiled by Shenyin and Wanguo Securities and the Shanghai Securities News.

Last year, 130 billion yuan of capital flowed out of the A-share market, the report added.

Most lenders fell as analysts expect the growth of their earnings to moderate amid interest rate liberalization.

The Industrial Bank lost 1.4 percent to 16.79 yuan. The Bank of Communications fell 1.4 percent to 4.91 yuan.

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