SHANGHAI stocks dipped yesterday for the seventh straight day amid a liquidity squeeze and concern over China's economy, despite new quotas granted to foreign investors to tap domestic stocks.

The Shanghai Composite Index edged down 0.08 percent to 1,950.01 points.

Investors are hesitant to commit to the market given the liquidity crunch and economic weakness, said Western Securities.

On Wednesday Fitch Ratings cut its forecast on China's 2013 economic growth to 7.5 percent, down from its previous projection of 8 percent, as surging borrowing costs in June may be risky to the economy.

On Monday, China granted 9.2 billion yuan (US$1.5 billion) under the Renminbi Qualified Foreign Institutional Investors scheme, bringing the total quota to 104.9 billion yuan, the State Administration of Foreign Exchange data showed.

Yangtze River Investment Industry Co, which offers marine and air transport, slid 7.1 percent to 6.25 yuan. CMST Development Co, a warehousing enterprise, declined 4.5 percent to end at 6.32 yuan.