(Yicai Global) Jan 2 -- China's stock markets retreated significantly this morning after opening slightly higher on the first day of trading of the new year.

The Shanghai Composite Index rose 0.16 percent to 2,497.88 points at the opening, while the Shenzhen Component Index opened up 0.28 percent at 7,260.34 points. The Growth Enterprise Index rose 0.01 percent to 1,250.62 points.

The rise was short-lived as stocks fell across the board over the course of the morning, especially those in the healthcare sector. The Shanghai Composite Index had fallen 1.01 percent by 10.30 a.m. while the Shenzhen Component and Growth Enterprise Indexes had slid 0.66 percent and 0.97 percent, respectively.

The healthcare sector had fallen 2.08 percent as of 10.30 a.m., continuing the decline that started at the end of last year. China announced a new national quantity purchase policy for the industry in December, which will dramatically cut the price of certain drugs in the country. 

Editor: William Clegg