Fu Chenghao/Shanghai Daily news

With petrochemical producers and airlines taking it on the chin yesterday, Shanghai shares finished lower due to
surging crude oil prices.
The Shanghai Composite Index, which covers yuan-denominated A shares and foreign-currency B shares, fell 0.66 percent to 1,212.62. The Ashare Index dropped 0.65 percent to 1,274.24 while the B-share Index lost 1.12 percent to 69.24.
Crude for October delivery shot up US$4.39 to US$67.39 a barrel on the New York Mercantile Exchange on Monday over fears tropical storm Rita would possibly head to the US Gulf of Mexico, where crude production platforms
and oil trading facilities are still struggling to recover after Hurricane Katrina hit late last month. It was the highest close since September 2.
Rocketing crude rates would squeeze Chinese oil refiners’profits due to government-controlled pricing limits, meaning oil companies would be forced to subsidize consumers’petrol and diesel use.
China Petroleum & Chemical Corp, Asia’s top oil refiner that is also known as Sinopec, fell 0.47 percent to close at 4.23 yuan (52 US cents).
Airlines fell on concern higher jet fuel costs would erode profitability.“In the long term, I think airlines
remain a buy as the traffic volume will increase,”said Wei Wei, a West China Securities Co trader.
China Southern Airlines Co shed 0.70 percent to 2.82 yuan.