Shanghai Daily news

Shanghai's key stock fell to the lowest since August 1 on concern the worst snowstorms in decades will reduce economic growth and push up inflation.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, slid 1.43 percent, or 62.63 points, to 4,320.77.

Losers in the Shanghai market outnumbered gainers 734 to 92 while 12 were unchanged.

The Shanghai index tumbled 9.26 percent this week.

The Shenzhen Composite Index, which covers the smaller mainland stock market, lost 2.77 percent, or 36.37 points, to 1,274.92.

The snowstorms, the worst in 50 years, have led to production halts at factories and delayed deliveries of goods, adding additional woes to already weak market sentiment that has undermined investor confidence.

The storms may have cut steel production by 1.5 million metric tons in the country, Mysteel.com said yesterday.

Coal producers and power-related companies fell on weather concerns.

Datang Power, the nation's second-biggest electricity producer based on market value, dropped the daily cap of 10 percent, or 1.61 yuan (22 US cents), to 14.50 yuan. Yanzhou Coal Mine Co, the listed unit of the country's fourth-biggest coal miner, sank 6.37 percent, or 1.25 yuan, to 18.36 yuan.

The extreme winter weather, including snowfalls, sleet and sudden temperature drops this month, will cut economic growth by half a percentage point, and push up inflation 0.3 of a percentage point, China Securities Journal said.

The blizzards have led to shortages of coal, electricity and oil, and will hurt the country's economy in the short term, Xinhua news agency said.