Zhang Liuhao/Shanghai Daily news

Shares in Shanghai fell yesterday amid concerns over an outflow of funds from the stock markets after the insurance regulator released the latest data showing that insurers shrank their investment in shares in May.
The Shanghai Composite Index, which covers both yuan-denominated A shares and hard-currency B shares, trimmed 1.98 percent to 1,017.98, the biggest decline in a week. The A-share Index also lost 1.98 percent to 1,069.13, and the B-share Index plunged 2.82 percent to close at 60.94.
The China Insurance Regulatory Commission said the statistics showed the country's insurers invested about 87.1 billion yuan (US$10.5 billion) in stocks in May, a drop of 1.9 billion yuan from April. However, they boosted investment in government bonds.
The decline in the stock markets in May was attributed to the withdrawal of insurance funds, China Securities Journal said, citing an unidentified official at an insurance assets management company.
Dai Ming, an analyst with Fortune Securities Brokerage Co Ltd, said that the data cast an even darker shadow on investor sentiment and created a lackluster mood in the market, which will heighten concerns that insurance funds or institutional investors may curb their capital inflow in shares.
Dai added he did not believe any big fund would enter the market now.