SHANGHAI stock market was flat in morning session as losses made by steel makers overshadowed gains of strong banks.

The Shanghai Composite Index dipped 0.08 percent to 2,923.08. Turnover was 59.1 billion yuan (US$9.1 billion), slightly higher than yesterday morning's 56.7 billion yuan.

Banks were strong on positive earnings reports. Agricultural Bank of China climbed 2.8 percent after it said first-quarter profit rose 36 percent from last year. China Minsheng Banking Corp was up 0.5 percent after reporting a 45 percent growth of profit in the first quarter.

Steel makers led the decliners on concerns that previous gains were excessive. Jinan Iron & Steel Co tumbled 9.3 percent to 5.29 yuan after resuming trading. The shares had jumped by the daily limit of 10 percent for seven days after a merger plan with Laiwu Iron & Steel Co was released. Laiwu Iron & Steel Co also slid 10 percent to 10.76 yuan.

The property sector extended previous losses. China Vanke lost 0.7 percent to 8.34 yuan. Poly Real Estate Co fell 0.5 percent to 13.21 yuan.