Fu Chenghao/Shanghai Daily news

Local shares dropped yesterday after a recent government report said that the profit of the nation's auto industry dived by more than 50 percent in the first five months of the year.
The Shanghai Composite Index, which covers yuan-denominated A shares and foreign-currency B shares, dropped 1.37 percent to 1,012.10. The A-share Index dipped 1.30 percent to 1,064.78, while the B-share Index plummeted 7.44 percent to 51.44.
According to a Ministry of Commerce report issued late on Friday, the country's 6,244 vehicle and part makers reported a combined profit of 16.7 billion yuan (US$2 billion), 53 percent less than the period a year ago. It attributed the decline to discounts and rising raw material costs.
"We did see a potential blight in the auto sector this year," said Zhang Qi, a Haitong Securities Co Ltd trader. "Most automakers reported poor performances in the first quarter."
Sales for the industry rose 2.19 percent to 453 billion yuan during the period in China, the world's fourth-largest automobile maker.
"Truck and bus makers may survive better than car producers," Zhang said.
Carmakers were more vulnerable as more imports hit the market. Increasing traffic and climbing gas prices depressed potential private car buyers.
Shenyang Jinbei Automotive Co Ltd lost 7.48 percent to close at 1.36 yuan.