Shanghai shares dip in morning session

Shanghai stocks edged lower in morning trading as concerns over economic growth and a spate of new initial public offerings continued to weigh on the market.

The key Shanghai Composite Index shed 0.14 percent, or 2.82 points, to 2,064.56. Turnover was 36.1 billion yuan (US$5.9 billion) by midday.

"The market is depressed by a slowing economy and the anxiety about new IPOs that may divert funds from existing shares," Haitong Securities said in a note Thursday.

Data released Wednesday showed the HSBC flash Purchasing Managers' Index rose to 48.3 in April, slightly up from March's final reading of 48 but still below 50, a mark separating growth from contraction.

Also yesterday, the China Securities Regulatory Commission released IPO prospectuses of 10 more companies, bringing the total number of potential new IPOs to 75.

Medical device manufacturers fell the most. Shinva Medical Instrument Co Ltd sank 2.8 percent to 74.60 yuan. Top Choice Medical Investment Co Inc lost 3.6 percent to 39.20 yuan.

Media companies also declined. Beijing Gehua CATV Network Co Ltd decreased 2.5 percent to 10.35 yuan. Zhejiang Daily Media Group Co Ltd dropped 3.6 percent to 25.98 yuan.

Gemdale Corporation, a major housing developer in China, surged by the daily limit of 10 percent to 9.35 yuan after Anbang Life Insurance Co Ltd increased its holdings in the developer to 10 percent through secondary market.