BEIJING, July 17 (Xinhua) -- Chinese stocks saw across-the-board declines in Monday's morning session with the index for growth firms tumbling nearly 3 percent.
The benchmark Shanghai Composite Index (SCI) dropped more than 2 percent in less than 30 minutes after opening, and then quickly narrowed the loss due to the release of encouraging economic data. The SCI stood at 3,218.75 points by noon, down 0.11 percent.
The smaller Shenzhen Component Index lost 1.7 percent.
The declines were attributed to a wave of panic selling at opening as the market was weighed on by accelerated IPO approval and lackluster growth companies.
The ChiNext Index, China's NASDAQ-style board of growth enterprises, shed 2.97 percent during the morning and continued its bearish performance since last week.
Analysts said investor confidence in the ChiNext is dwindling as concerns are rising over the prolonged plight of leading growth firm Leshi Internet Information and Technology Corp. Small caps were also less attractive as blue chips have become the new favorite.
China's economy posted a forecast-beating growth rate in the first half, with the GDP up 6.9 percent from a year ago, data from the National Bureau of Statistics showed. The increase for the second quarter was also 6.9 percent.
