Miners and developers drop in Shanghai

SHANGHAI'S key stock index dropped in the morning session led by miners and property developers.

The benchmark Shanghai Composite Index lost 2.5 percent, or 71.8 points, to close at 2,812.5 points. Turnover fell to 80.5 billion yuan （US$12.1 billion） from yesterday morning's 88.6 billion yuan.

The Shenzhen Composite Index, which tracks the smaller domestic market in southern China, was down 2.2 percent to 1,284.8 points.

Metal futures on Shanghai and overseas markets continued to decline on worries that China's measures to curb inflation may hurt economic growth, and that demand in Europe may decrease on governments' tightening budgets.

Declines of future prices on the Shanghai market also indicates an ebbing of liquidity, market watchers said.

Miners were weak. Jiangxi Copper Co fell 6.3 percent to 33.84 yuan. Aluminum Corp of China lost 5 percent to 10.11 yaun. Datong Coal Industry Co fell 4.5 percent to 20.25 yuan.

The property sector extended previous losses after property developers listed on the Hong Kong bourse tumbled after the Hong Kong government last week raised stamp tax rates to curb speculation.

China Vanke fell 1.1 percent to 8 yuan. Gemdale Corp lost 1.7 percent to 5.85 yuan. Poly Real Estate Co shed 3.2 percent to 11.86 yuan.

Tourist companies gained. Xi'an Catering Co jumped 8.6 percent to 12.72 yuan. China CYTS Tours Holding Co grew 1.2 percent to 15.88 yuan. Yunnan Tourism Co surged 6.9 percent to 10.09 yuan.