Chinese share prices fell slightly on Thursday as the benchmark Shanghai Composite Index closed 0.88 percent lower.

 

The key index, which covers both A and B shares, slipped 47.42 points to finish at 5,365.27. It ended four straight trading sessions of decline on Wednesday by soaring 4.94 percent to 5,412.69.

 

The Shenzhen Component Index on the smaller Shenzhen Stock Exchange dropped 258.65 points, or 1.49 percent, to 1,7096.90.

 

The Hushen 300 Index, accounting for 60 percent of the nation's two stock markets value, fell 64.78 points, or 1.26 percent, to 5,081.11.

 

Combined turnover at the two bourses shrank by a small margin to 122 billion yuan (US$16.4 billion) from 130 billion yuan of the previous session.

 

Analysts said investors remained cautious amid worries the central bank may further raise the interest rates over the weekend to curb strong inflation and a surging economy.

 

China's consumer price index rose to 6.5 percent in October, up from 6.2 percent in September and matching the 11-year monthly record in August, the National Bureau of Statistics said on Tuesday.

 

China will boost macro-economic control to prevent an overheating economy and take further measures to stabilize general price level, said the executive meeting of the State Council presided by Premier Wen Jiabao on Wednesday.

 

Profit-taking sank energy stocks that posted huge gains on Wednesday.

 

PetroChina, the nation's largest oil and gas producer, shed 2.49 percent to 37.91 yuan. China Shenhua Energy, the nation's largest coal producer, plunged 4.19 percent to 67.39 yuan.

 

On Wednesday PetroChina climbed five percent to 38.88 yuan and China Shenhua Energy soared 9.94 percent to 70.34 yuan.

 

Financial stocks turned in mixed performance. Shanghai Pudong Development Bank rose 1.61 percent to 54.78 yuan. Industrial and Commercial Bank of China rose 0.12 percent to 8.36 yuan.

 

Citic Securities, the country's largest stock brokerage, slumped 1.05 percent to 102.71 yuan.

 

The A share index on the Shanghai Stock Exchange slid 49.68 points, or 0.87 percent, to 5,632.87 and the B share index fell 4.08 points, or 1.18 percent, to 340.68.

 

(Xinhua News Agency November 15, 2007)