SHANGHAI stocks fell yesterday as investors were spooked by the release of economic data which showed a slowdown in the economy.

The Shanghai Composite Index lost 1.69 percent, or 56 points, to end at 3,291.60 after reaching an intraday high of 3,363.22. Turnover in the local market shrank further to 54.90 billion yuan (US$7.84 million) from 60.83 billion yuan on Tuesday. Losers outnumbered gainers 725 to 112 while 68 stocks were unchanged.

"The market continued to fluctuate and a decreasing turnover indicated that sentiment among investors was not likely to recover in the short term,'' said Hao Guomei, an analyst with Huatai Securities Co. "The slowdown in the domestic economy in the first quarter coupled with a high inflation rate would also have some negative influence on investors' confidence.''

China's gross domestic product expanded 10.6 percent year on year in the first three months of this year to 6.15 trillion yuan, the slowest pace of quarterly growth in more than a year amid the worst snowstorms in five decades and a worsening global economy affected by the United States subprime crisis, the National Bureau of Statistics said yesterday. The consumer price index, the main gauge of inflation, rose 8 percent in the same period, up 5.3 percentage points from a year ago, the bureau said.

Metal producers, real estate developers and brokerages stocks led decliners while coal miners gained.

Yunnan Copper, the country's third-biggest producer of the metal, dived 10 percent to 28.26 yuan and Jiangxi Copper Co, the nation's largest, lost 8.42 percent to 27.95 yuan.

Baoshan Iron & Steel Co, China's largest steel maker, lost 5.22 percent to 10.72 yuan while another leading producer Wuhan Iron & Steel Co tumbled 5.58 percent to 13.36 yuan.

China Shenhua Energy Co, the nation's largest coal producer, rose 2.94 percent to 45.19 yuan.