News that more social security funds will be invested in the domestic stock markets failed to rouse Shanghai share prices yesterday.

Xiang Huaicheng, chairman of the National Council for Social Security Fund, was quoted by the Securities Times as saying that it plans to raise its positions in the domestic markets as it does not see investing in overseas markets as a top priority.

By the end of September, 25.19 billion yuan (US$3.1 billion), or 13.14 percent of the fund's overall investments, were pumped into shares against 11 percent at the end of last year.

The Shanghai Composite Index, which tracks yuan-denominated A shares and foreign-currency B shares, shed 0.80 percent to 1,152.61. The A-share Index lost 0.80 percent to 1,211.08 while the B-share Index eased 0.66 percent to 66.33.

"The market is correcting itself narrowly amid an absence of fresh leads," said Wang Xiaomin, an analyst at Xiangcai Securities Co, adding that he also expected a technical rebound over coming sessions.

The country's two major power generators fell despite raising electricity production.

Huaneng Power International Inc declined 0.87 percent to 5.68 yuan although it said it generated 37.3 percent more electricity in the first nine months from a year earlier.

Shares of China Yangtze Power Co, which owns both the Three Gorges Dam and Gezhou Dam, slid 0.40 percent to 7.47 yuan. The utility produced 6.3 percent more electricity in the first three quarters.

Baoshan Iron & Steel Co, China's largest steelmaker, added 0.95 percent to close at 4.26 yuan after it said its parent has received approval from the China Securities Regulatory Commission to launch the second round of a maximum 2 billion yuan buyback program.

Shanghai Baosteel Group will buy back the listed company's shares if the price falls below 4.53 yuan at the end of six months starting from tomorrow. It has used up the 2 billion yuan in funds to support Baoshan Iron's share price after the listed company reformed its shareholding structure.

Other firms in the spotlight yesterday were those which had just finished their state-share sales.