Data fail to allay woes over economy

Shanghai stocks fell for a fourth straight day yesterday as positive economic data failed to ease concerns about economic growth.

The Shanghai Composite Index lost 0.66 percent, or 13.47 points, to 2,024.83.

The market fell despite data showing China's economy picked up in May. The official non-manufacturing Purchasing Managers' Index, geared toward state-owned service enterprises, rose to 55.5 in May, the best in six months, the National Bureau of Statistics and the China Federation of Logistics and Purchasing said on Tuesday.

A separate report by HSBC Holding Plc showed China's manufacturing activity in private and export-oriented firms picked up last month but still shrank for a fifth straight month.

"Although data showed China's economy is warming up slightly, investors are waiting for more clear signs of an economic rebound," said Qiao Qian, analyst at Haitong Securities.

Property developers fell after the China Business News said banks have raised interest rates for first-home buyers in some cities.

China Fortune Land lost 6.1 percent to 24.80 yuan (US$3.97). Poly Real Estate, China's second-largest listed developer, fell 2.8 percent to close at 4.86 yuan.