Chinese shares fall

Chinese stocks fell on Wednesday as investors sold steel shares on fears of measures to curb investment in the sector, but stocks of firms linked to disgraced tycoon Zhou Zhengyi bucked the trend.
The benchmark Shanghai composite index, grouping hard-currency B shares and yuan-denominated A shares, fell 0.8 percent to 1,567.067 points.
But Daying Modern Agriculture Co and Shanghai Albatronics Co Ltd, both controlled by Zhou, had jumped by the close. Daying's shares finished 4.9 percent higher at 5.12 yuan and Albatronics jumped 6.07 percent to 6.64 yuan.
Those stocks rose after Zhou was given a shorter-than-expected sentence for fraud. He was detained in May 2003 after an investigation into two billion yuan ($242 million) in loans obtained from the Bank of China, the nation's main foreign exchange lender.
The snack-shop owner turned real estate tycoon was sentenced on Tuesday to three years in jail for share fraud and faking documents, which analysts and brokers said was lenient for a corruption case.
The rest of the market wilted, though this was not put down to oil prices hovering at record highs, brokers said.
China's largely closed markets rarely react to global share fluctuations, though they can move on swings in Hong Kong.
The Shanghai index has fallen 12 percent since early April as Beijing has taken steps to curb excess lending and slow economic growth approaching 10 percent a year.
Reflecting fears over the potential overheating, a top government think-tank said on Wednesday the economy was likely to grow 11.4 percent in the year through the second quarter, partly because the Sars outbreak weakened output a year ago.
Baoshan Iron and Steel Co Ltd, the world's fourth most valuable steel maker, was one of Wednesday's most active counters. Its A shares, open to a small circle of foreign investors, closed down 1.5 percent at 6.40 yuan.
Baosteel has shed 17 percent since mid-March, hit by worries over its bottom line after Beijing named steel as being among a handful of industries showing obvious signs of overheating.
Another index heavyweight, Maanshan Iron and Steel Co Ltd, was also active and fell 2.9 percent to 4.77 yuan. Smaller Nanjing Steel Co Ltd slid 4.2 percent to 9.13 yuan.