SHANGHAI stocks fell in the morning session after the benchmark index repeatedly hit highs in the past few days.

The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, dropped 0.8 percent to 4,435.22. The record close was set yesterday at 4,471.03.

The Shenzhen Composite Index, which covers the smaller mainland stock market, lost 0.75 percent to 1,281.60.

The metals sector, which had stayed strong for days on a positive industry outlook, saw a widespread drop in the morning.

Yunnan Copper, the country's third-biggest copper maker, dropped 2.25 percent to 47.82 yuan per share. Aluminum Corp of China dropped 1.55 percent to 25.46 yuan.

Baoshan Steel, China's biggest steel maker, lost 0.15 percent to 13.47 yuan, and Xinjiang Ba Yi Iron & Steel Co dropped 2.75 percent to 9.18 yuan. Baosteel yesterday agreed to buy a 53 percent stake in Ba Yi.

China Vanke, the country's biggest listed developer, recovered from yesterday's loss by jumping 2.12 percent to 28.90 yuan.

Pudong Development Bank grew 2.11 percent to 41.10 yuan and China Merchants Bank gained 0.6 percent to 29.99 yuan.