China’s Stocks Fall for Fourth Day on Economic Growth, Inflation Concerns

China’s stocks fell for a fourth day on concern government measures to cool inflation are slowing the world’s second-biggest economy.

PetroChina Co., the nation’s biggest oil company, lost 1.9 percent after Goldman Sachs Group Inc. cut China’s economic growth estimates. Industrial and Commercial Bank of China Ltd. led declines for lenders after the Securities Times cited investors as saying the central bank may further boost banks’ reserve requirement ratios. China Gezhouba Group Co., which has hydroelectric power projects, rose 2.4 percent as Xinhua News Agency reported China will boost water conservation efforts.

“Investors are concerned about the pace of economic growth after so many measures to cool the economy and the debt crisis in Europe,” said Sun Chao, an analyst at Citic Securities Co., China’s biggest-listed brokerage, in Shanghai. “They are simply selling as they are unwilling to take more risks for now.”

The Shanghai Composite Index dropped 7.5 points, or 0.3 percent, to 2,767.06 as of the 3 p.m. close. The measure has lost 9.5 percent from the close of 3,057.33 on April 18, after earlier sliding as much as 10 percent, a sign analysts say that the market has entered a correction.

The measure plunged 2.9 percent yesterday, erasing this year’s advance of as much as 8.9 percent, after a manufacturing gauge fell to its lowest level in 10 months. China’s preliminary manufacturing index, known as the Flash PMI, was at 51.1 in May, compared with the final reading of 51.8 in April, HSBC Holdings Plc and Markit Economics said yesterday. A number above 50 indicates expansion.

ICBC, the nation’s biggest lender, dropped 0.5 percent to 4.44 yuan today. Agricultural Bank of China Ltd. slid 0.7 percent to 2.85 yuan.