Leo Zhang/Shanghai Daily news 

Shanghai shares tumbled yesterday after a media report said China mainland's pension fund may start investing in overseas markets as early as today, fanning concern of a possible capital outflow.
"The news cast a psychologically negative impact on investors as the mainland markets have already been plagued by a shortfall of funds," said Li Zhi, a Hualin Securities Co analyst.
The Shanghai Composite Index, which covers yuan-denominated A shares and foreign-currency B shares, tumbled 2.18 percent to 1,080.94. The A-share Index dived 2.19 percent to 1,135.12 and the B-share Index shed 1.38 percent to 65.30.
The mainland's pension fund, which manages about 171 billion yuan (US$20 billion), plans to initially pour 5 billion yuan into the stock market in Hong Kong, Beijing Business Daily reported yesterday, citing unidentified fund managers.
Xiang Huaicheng, the fund chairman, said in April a committee was set up to select fund management firms for investment abroad and preparations had begun.
China United Telecommunications Corp, which controls the mainland's second-largest cell phone operator, lost 0.40 percent to 2.52 yuan.
Baoshan Iron & Steel Co, the largest mainland steelmaker, fell 0.99 percent to 4.98 yuan.