Leo Zhang/Shanghai Daily news

A report on slower earnings growth at China's industrial companies weighed on Shanghai stocks yesterday as concern mounted over costs and stiffer competition.
The Shanghai Composite Index, which covers both yuan-denominated A shares and hard-currency B shares, dipped 1.90 percent to 1,098.66.
The A-share index shed 1.91 percent to 1,154.60 and the B-share index was down 0.97 percent at 62.16.
"Some industries, including steel and cell phones, may face growing competition and even overcapacity," said Wu Zhiguo, a Guohai Securities Co analyst. "Higher energy costs have also cut into manufacturers' profit."
Industrial companies in China posted a combined net profit of 1.11 trillion yuan (US$137 billion) in the first 10 months of the year, up 19.4 percent on a yearly basis, the National Bureau of Statistics said yesterday.
The growth rate contrasted with 39.7 percent a year earlier and 20.1 percent for the first three quarters, the bureau said.
Earnings at steelmakers dropped to 11 percent in the 10-month period, compared with a 21 percent increase in the first nine months, the bureau said.
Baoshan Iron & Steel Co, the listed arm of China's biggest steelmaker, lost 1.52 percent to 3.88 yuan.
China United Telecommunications Corp, operator of the country's No. 2 cell phone operator, eased 2.65 percent to 2.57 yuan.
China, the world's largest mobile-phone market by users, had 383 million subscribers as of the end of October, the Ministry of Information Industry said. The nation added 5.1 million users last month from September, bringing the total additions this year to 48.2 million, the ministry said.
Shanghai Automotive Co, the listed unit of China's biggest carmaker, lost 2.53 percent to 3.08 yuan.
China Minsheng Banking Corp, the nation's only privately owned lender, slipped 2.18 percent to 3.59 yuan. The company said it plans to issue as much as 30 billion yuan of three-year, five-year and 10-year bonds by 2007 to fund network expansion.