Shares in Shanghai lost yesterday on selling sentiment in the high-tech sector.

　　The benchmark Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, inched down 0.17 percent to 1774.55. The A-share Index finished at 1860.99, also dipping 0.17 percent.

　　"The high-tech sector in the Shanghai market lost their luster in the eyes of some investors since the stocks are likely to migrate to the Shenzhen Stock Exchange, which is expected to allow initial public offerings for the first time in three years," said Wu Jie, a trader with King Hing Securities Co Ltd.

　　The resumption of IPOs on the Shenzhen bourse is seen as the Chinese government's first step to set up a Nasdaq-like market comprising small- and middle-size firms.

　　Investors withdrew their capital in the high-tech stocks traded in the Shanghai bourse, looking to tap the Shenzhen market instead, Wu noted.

　　Investors will inject funds into newly-listed firms on the Shenzhen market as these stocks have a large potential margin for further development.

　　Shandong province-based Weifang Beida Jade Bird Huaguang Technology Co closed at 9.33 yuan (US$1.12), down 4.31 percent. It had gained 22.4 percent since this year.

　　The firm said in its 2003 annul report yesterday that its profit plunged last year to 9.59 million yuan, a year-on-year dive of 48.8 percent.

　　Beijing-based Daheng New Epoch Technology Inc declined 3.31 percent to 10.82 yuan. Xi'an But'one Information Corp shed 3.3 percent to 23.72 yuan.