Shanghai shares dropped yesterday after a media report said the domestic capital market was still young despite its rapid development. It warned investors to change strategies and improve their market knowledge.

　　The Shanghai Composite Index, which groups both yuan-denominated A shares and hard-currency B shares, slipped 0.88 percent to 1,359.12.

　　The A-share Index also lost 0.88 percent to 1,426.93 while the B-share Index shed 1.02 percent to close at 83.84.

　　According to the report, the country's share markets are in a critical period. Overly optimistic expectations or incorrect investor behavior could stunt the market's development, reported Shanghai Securities News.

　　The report cited the views of several fund company managers attending a symposium held by the newspaper.

　　"Regulatory officials and the central government reiterated promises to bolster the share market again and again," said Wei Wei, an analyst with West China Securities Co Ltd. "But many industry officials have not shown much optimism in the market's prospect this quarter."

　　She said investors were still worried that a second interest rate hike would come soon.

　　"Around the end of the year the market usually has a tight liquidity supply," Wei said. "Investors would rather hold money than invest."

　　She also expected the sales growth of many listed companies would slow in the fourth quarter.

　　China Eastern Airlines Co Ltd, one of the nation's three biggest carriers, closed at 4.47 yuan, down 0.22 percent.