Stocks continue decline on tighter credit jitters

SHANGHAI - China's stocks slid for a sixth day, driving the benchmark index to the longest stretch of losses in 11 months, on concern that tightening measures are slowing the economy and making it harder for small companies to borrow money.

Huaxin Cement Co, an affiliate of Holcim Ltd, dropped 2.9 percent after Shanghai Securities News reported China's industrial output might slow. A gauge of small-capitalization stocks fell to the lowest close in four months as Citigroup Inc said smaller companies are being squeezed by tighter credit. Kangmei Pharmaceutical Co led declines for drug makers on speculation the government will further lower drug prices.

"Sentiment is weak and we haven't seen anything positive that can support stocks," said Dai Ming, fund manager at Shanghai Kingsun Investment Management & Consulting Co. "Slowing growth, high inflation and tight lending will continue to weigh on the market in the near future."