Many China-related shares came under selling pressure yesterday for a second day as investors moved to lock in profits. Brokers said the sales signalled a pause rather than a reversal of the trend that had seen many mainland-linked stocks post dazzling gains over the past month. Expressions of unease about the rise from mainland officials gave the sell-down added impetus, they said. The Hang Seng China Enterprises Index fell 1.89 per cent to 1,039.93 points. Bloomberg's red-chip index dropped 3.9 per cent to 229.57 points. BNP PrimeEast Securities associate director David Harman said: 'I don't think that the red-chip phenomenon is over yet. There are lots of new [China-related] issues in the next few months and there will be renewed interest.' He said fund managers might rebalance their portfolios at the end of the quarter to reflect the arrival of better-quality China plays. The three biggest net losers yesterday were all China plays. Shanghai Industrial, the listed arm of the city's government, dropped 5.8 per cent to $42.30. China Resources Enterprise fell 5.49 per cent to $20.65, while Citic Pacific shed 2.39 per cent to $40.90. One broker said: 'Some of the red chips were very overbought.' He forecast that most counters would correct a further 5 per cent before buyers began to emerge. Other losers included China Eastern Airlines, which sank 4 per cent to $2.40. China's first listed airline said profit for last year fell a greater than expected 6.8 per cent. Guangdong Investment dropped 5.41 per cent to $7. Select China issues hung on to their recent gains or bucked the bearish sentiment. Min Xin, the listed arm of the Xiamen government, advanced 6.32 per cent to $4.625. CNPC, the local arm of the mainland's onshore oil monopoly, firmed 7.2 per cent to $1.04.