Shanghai's key stock index fell slightly this morning. The market had fallen three-straight trading days before today's session.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, dropped 0.31 percent, or 16.13 points, to 5,135.50 at 11:30am today.

Losers in the Shanghai market outnumbered winners 463 to 305 and 82 were unchanged.

The Shenzhen Composite Index, which covers the smaller mainland stock market, inched up 0.12 percent, or 1.84 points, to 1,503.19.

China Petroleum & Chemical Corp, Asia's biggest oil refiner and a key heavyweight in the market, fell this morning.

China Petroleum, also known as Sinopec, slid 3.12 percent, or 0.67 yuan (9 US cents), to 20.82 yuan. Sinopec Shanghai Petrochemical Co, China's largest maker of ethylene, shed 3.77 percent, or 0.59 yuan, to 15.08 yuan. Sinopec Yizheng Chemical Fibre Co, China's largest chemical fiber maker, lost 4.20 percent, or 0.45 yuan, to 10.27 yuan.

Some blue chips in other sectors showed signs of recovery from previous losses. Some property developers rose after China yesterday released its monthly housing price report in 70 cities around the country.

Guangzhou-based Poly Real Estate Co jumped 1.97 percent, or 1.37 yuan, to 70.74 yuan while Gemdale Corp, a Chinese developer that partnered with ING Groep NV, surged 4.91 percent, or 2.03 yuan, to finish at 43.37 yuan.

China's house prices in 70 cities rose an average of 10.5 percent in December from a year earlier, maintaining a pace that's the fastest since records began in 2005, the National Development and Reform Commission, the country's top economic planning body, said yesterday.

Industrial & Commercial Bank of China, the nation's biggest lender, gained 0.78 percent, or 0.06 yuan, to 7.77 yuan.

ICBC said it expects net income last year to rise more than 60 percent amid a substantial gain in commission earnings. Its net income was 48.8 billion yuan in 2006.

But China Construction Bank Corp, the country's second-largest bank, dipped 0.11 percent, or 0.01 yuan, to close the session at 9.34 yuan. The bank said net income for 2007 may have risen 48 percent amid higher interest and commission earnings. The bank's net income in 2006 was 46.3 billion yuan

Elsewhere, US stocks fell yesterday, with the benchmark S&P 500 plummeting to a 15-month low after reports on home construction and manufacturing, adding to concern the world's largest economy is in a recession.

Home construction decreased 14 percent, the US Commerce Department said yesterday. The US market accounts for about a fifth of China's exports, according to customs data.

(Shanghai Daily January 18, 2008)