SHANGHAI stocks slipped today, with the nation's biggest oil producer weighing down on the market after reporting a slump in profit, while concerns flamed up again over expected inflationary growth.

The Shanghai Composite Index lost 0.15 percent to close at 2,612.19. Turnover fell to 81.5 billion yuan (US$12.75 billion) from yesterday's 104.5 billion yuan. The index however climbed 3.04 percent overall this week.

PetroChina, China's biggest oil producer by market value and one the biggest heavyweights in the Shanghai market, shed 0.59 percent to 10.04 yuan after reporting lower than expected net income growth of 1 percent during the first half.

Banks contributed to the market losses as well despite earning reports showing that China's four largest banks made a combined profit of 339.3 billion yuan, larger than the combined profits of 14 largest banks in US and Europe.

Industrial and Commercial Bank of China, the country's largest lender, lost 0.48 percent to 4.16 yuan, despite reporting profits rose nearly 30 percent from a year earlier. Agricultural Bank of China Ltd was down 0.76 percent to 2.62 yuan. The lender's first-half net income rose 45 percent from a year earlier to 66.7 billion yuan.

Meanwhile, tourist sector was one of the strongest performers today as market expected that the upcoming Mid-Autumn Festival and National Holiday would boost their earnings. China CYTS Tours Holding Co rose 2.84 percent to 15.95 yuan.

Source:shanghaidaily