By Dong Zhixin (chinadaily.com.cn)
Updated: 2007-08-10 16:14

Investors talk at a brokerage in Wuhan, Central China's Hubei Province August 9, 2007. [newsphoto]

China's main stock index fell slightly on Friday for the first loss in six sessions, as concerns grew over possible tightening measures to curb inflation.

The benchmark Shanghai Composite Index lost 0.10 percent to close at 4,749.36 points, after moving between 4,640.77 and 4,769.62. The Shenzhen Composite Index dropped 2.17 percent to 1,319.54.

That decline came after the Shanghai index posted record highs for five sessions in a row, increasing the pressure for profit-taking.

It also reflected investors' concerns that the central bank might take measures to keep inflation in check in response to July's Consumer Price Index (CPI) due to be released on Monday.

The figure is widely expected to surpass five percent, the fastest in more than 30 months and well above the official target of three percent. The CPI is expected to grow 4.3 percent in the third quarter, the State Information Center said in a report published on Friday.

Shenyin Wanguo Securities said the pressure for a correction is increasing in the short term, but in the long term, the market will maintain the upward trend and is expected to hit a series of new highs.

Huiyang Investment Consulting Co. calls the decline a normal technical correction and believes the market will continue to rise in the days to come.

Financial shares were weak, with China Life falling two percent to close at 48.02 yuan per share. China Minsheng Banking Corp. declined 2.55 percent to 14.9 yuan.

Bucking the trend, the Industrial and Commercial Bank of China edged up 2.29 percent to 6.69 yuan.

Steel shares also dragged down the market. Baosteel fell 1.60 percent to 16.02 yuan, while Angang Iron and Steel dropped to 28.78 yuan after a 3.26 percent decrease.

In the property sector, China Vanke went down 4.47 percent to 33.76 yuan, followed by a 4.5 percent decrease in Overseas Chinese Town Holding to 59.88 yuan.