Shanghai shares yesterday dropped the most in two weeks as investor sentiment was dragged down by annual earnings reports of some of the biggest national companies amid an economic slowdown.
The Shanghai Composite Index shed 1.63 percent to 2,960.97 points, below the key 3,000-point level for the second time this week.
PetroChina, the country's biggest oil and gas producer as well as the most heavily weighted stock in the barometer, declined 1.93 percent to 7.63 yuan (US$1.17) as it posted its weakest annual profit in 16 years amid falling crude oil prices.
CITIC Securities Co, China's biggest listed brokerage, slumped 5.12 percent to 17.41 yuan after China International Capital Corp cut the brokerage's 2016 profit estimates by 38 percent yesterday, citing "uncertainty over the magnitude of potential penalties from earlier probes into its executives."
All the six executives being probed by the stock market regulator following the market rout last summer stepped down from their posts on January 19, CITIC said.
But Zhang Youjun, the brokerage's president, said yesterday that there was no evidence tying CITIC Securities to illegal insider trading.
Dongxing Securities Co lost 6.96 percent to 25.93 yuan while Haitong Securities Co shed 4 percent to 14.15 yuan.
