Shanghai shares in shaky start to Year of Snake
First day's trading after break sees benchmark index drop 11 points amid fears of liquidity drain
Mainland stocks got off to a bumpy start in the Year of Snake as the market, hit by worries of a liquidity drain, edged down after a week-long break for the Lunar New Year.
The Shanghai Composite Index declined 10.84 points, or 0.45 per cent, to 2,421.56 yesterday, the first trading day since February 8.
The drop disappointed investors, who had expected a rosy debut for the new year, which began on February 10, given the mainland economy had shown signs of solid recovery and regulators were striving to restore confidence.
Investors normally pay close attention to the market's trading debut after the Lunar New Year holiday, believing a first-day gain bodes well for the rest of the year.
Analysts said the market would rebound in the coming days as the overall upward momentum would continue. Since December last year, the main gauge had risen 22.3 per cent.
Qian Qimin, an analyst at Shenyin Wanguo Securities, said: "It was just a short-term correction and the market will regain its strength to approach the 2,500-point level.