Shanghai stocks continued their correction in the morning session led by the metal sector.

The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, dropped 0.37 percent, or 21.41 points, to 5,796.63 at 11:30am.

The Shenzhen Composite Index, which covers the smaller mainland stock market, lost 0.55 percent, or 12.22 points, to 1,506.82.

Turnover on the Shanghai market totaled 50 billion yuan (US$6.66 billion) and decliners outnumbered gainers by 561 to 314.

Baoshan Iron & Steel Co dropped 3.46 percent to 18.42 yuan a share and Wuhan Steel, China's fifth-biggest steel maker by output, dropped 3.57 percent to 17.03 yuan.

Jiangxi Copper, China's second-largest producer of the metal, lost 3.75 percent to 65.02 yuan and Yunnan Copper dropped 2.58 percent to 82.30 yuan.

Zhongjin Gold, China's largest publicly traded gold miner by market value, dropped 2.5 percent to 123.20 yuan and Shandong Gold Mining Co dropped 2.24 percent to 166.30 yuan.

Bank of Communications grew 5.79 percent to 15.36 yuan.

The bank's chairman Jiang Chaoliang announced the bank's profit for 2007 may reach 20 billion yuan during a break-out discussion at the 17th National Congress of the Communist Party of China last week.

China Petroleum & Chemical Corp, or Sinopec, dropped 1.41 percent to 24.45 yuan.

PetroChina, China's biggest oil and gas producer, was due to begin consultations today on pricing for an initial public offering in Shanghai expected to raise more than US$9 billion, possibly setting a new record for a mainland bourse.

The company said late yesterday that up to four billion Shanghai shares are due to begin trading November 5. The announcement came after the China Securities Regulatory Commission approved its IPO plan over the weekend.

(Shanghai Daily October 22, 2007)