BEIJING, May 15 (Xinhua) -- Share prices on the Shanghai Stock Exchange slumped on Tuesday as the benchmark Shanghai Composite Index ended its morning session with a recorded drop of 1.10 percent.

    The key Shanghai index, which covers both A and B shares, slid to 4,001.95 points, 44.44 lower than the 4,046.39 points recorded at close of business on Monday. It re-opened 0.23 percent higher on Tuesday, at 4,055.83 points.

    Volatility has increased since the index breached the 4,000 point mark, and on Friday the securities regulator, the China Securities Regulatory Commission, urged the government to educate investors about the risks of stock market investment.

    Banks were worst hit, with shares in the Bank of Communications closing the morning session slightly lower, at 14.11 yuan. The bank debuted on the Shanghai Stock Exchange on Tuesday, opening at14.20 yuan -- almost double its initial public offering price of 7.2 yuan.

    Analysts said other banking shares were under profit making pressure after recent gains.

    Share prices of Chinese banking heavyweights, the Industrial and Commercial Bank of China (ICBC) and the Bank of China (BOC), both fell, dropping 1.74 percent to 5.65 yuan 1.96 percent to 6.01yuan respectively.

    Steel shares were also big losers in the morning's trade. Share prices in Baoshan Iron and Steel, the country's biggest steel producer, dropped 2.18 percent to 12.99 yuan.

    Analysts have said that the volatility will continue as investors were divided on the development trend of equity markets in the near future.

    The Shanghai Composite Index could even fall to 3,850 points and, according to Beijing Shoufang Investment Consulting, investors should buy more shares with the lower price/earnings ratio for safer gains.