SHANGHAI stocks slid in the morning session after breaching the psychologically important 5,400 mark.

The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, dropped 1.09 percent, or 58.91 points, to 5,366.29 at 11:30am.

The Shenzhen Composite Index, which covers the smaller mainland stock market, lost 1.04 percent, or 15.72 points, to 1,493.10.

Insurers performed strongly in the morning with Ping An Insurance, the second biggest insurer in China, jumping 6.25 percent to 111.37 yuan (US$14.83) per share.

China Life, the country's biggest insurer, jumped 2.61 percent to 56.20 yuan.

Bank of Beijing shares jumped 87.92 percent on their trading debut in Shanghai today amid strong buying of the third listed city commercial bank.

The bank opened at 23 yuan and closed at 23.49 yuan at noon, up from its offer price of 12.50 yuan apiece, the upper limit of its price range.

Steel companies reported widespread drops.

Baoshan Iron & Steel Co dropped 4.42 percent to 18.60 yuan and Wuhan Iron & Steel tumbled 5.52 percent to 18.50 yuan.

However, other key stock indices in Asia rallied in the morning spurred by the US Federal Reserve's larger-than-expected interest rate cut.

Japan's benchmark Nikkei 225 stock index jumped 531.49 points, or 3.36 percent, to 16,333.29 points at the close of morning trading.

In early trading in Hong Kong, the blue chip Hang Seng Index was up 819.22 points, or 3.33 percent, to 25,396.073.

Stock markets in South Korea, Australia and Singapore were all up more than two percent. Shares in the Philippines, Malaysia and China's Taiwan also rose.