Chinese shares edged lower Monday, taking a cue from losses in Hong Kong, as investors sold to lock in recent gains amid growing uncertainty over the economic outlook.
The benchmark Shanghai Composite Index shed 16.4 points, or 0.7 percent, to close at 2358.04. The index had climbed 4.1 percent last week. The Shenzhen Composite Index for China's second exchange slipped 0.2 percent to 777.39.
Major stock markets across Asia dropped, with Hong Kong's Hang Seng Index falling 4.7 percent.
Analysts said the Shanghai benchmark was fluctuating around the psychologically important 2,400 level, under pressure after last week's rally.
"Investors were cautious, keeping a wait-and-see position, as the economic outlook is still uncertain," said Zhang Xiang, an analyst for Guoyuan Securities in Beijing.
Big state-owned companies reported poor annual financial results late last week, with the profits of Sinopec, China's biggest oil refiner, diving 47 percent year-on-year, and those of aluminum giant Chinalco falling by nearly 100 percent.
Nonferrous metals led Shanghai's decline after strong gains in previous sessions. Chinalco, or Aluminum Corp. of China, slumped 7.9 percent to 10.49 yuan, and Jiangxi Copper lost 1.9 percent to 23.44 yuan.
Sinopec, or China Petroleum & Chemical Corp., gave up 1.3 percent to 9 yuan and PetroChina Ltd., Asia's biggest oil and gas producer, slipped 2.1 percent to 11.49 yuan.
Bucking the trend, brokerages gained ground after local reports said a long-awaited growth enterprise board for smaller firms has received government approval. Sinolink Securities Ltd. soared by the daily maximum of 10 percent to 34.22 yuan, and Changjiang Securities Co. jumped 7.2 percent to 15.29 yuan.
In currency markets, the yuan weakened to 6.8354 to the U.S. dollar, down from Saturday's close of 6.82959.
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