China’s stocks fell as automakers dropped on concern the country’s slowing growth will hurt profits, while commodity producers slumped after the price of gold and copper declined. SAIC Motor Corp., the country’s biggest domestic carmaker, lost 4.3 percent after its President Chen Hong said China’s vehicle sales growth may slow in the first quarter. Shandong Gold Mining Co. and Jiangxi Copper Co. fell more than 3 percent. The Shanghai Composite Index lost 22.86, or 1 percent, to 2,170.15 at the 11:30 a.m. local-time break, erasing an earlier 1.8 percent gain. About three stocks fell for every two that rose. The gauge has rallied 19 percent this year, the world’s best performer, on optimism a 4 trillion yuan ($585 million) spending plan unveiled in November will shield the economy from the effects of recessions in the U.S., Japan and Europe. “The perceived benefits of the government stimulus have been priced in,” said Larry Wan, Shanghai-based deputy chief investment officer at KBC-Goldstate Fund Management Co., which oversees about $584 million in assets. “We’re at a critical point and the market could face added pressure if fundamentals don’t improve.” The CSI 300 Index, which tracks stocks on both the Shanghai and Shenzhen exchanges, slid 1.1 percent to 2,260.84. Premier Wen Jiabao reiterated last week the government’s pledge to “significantly increase” investment in 2009 to help counter the slowest growth in seven years. He didn’t specify new stimulus spending. Global Slump The People’s Bank of China cut interest rates five times in the final four months of last year, including the biggest single reduction since the 1997-98 Asian financial crisis. The government is targeting growth of 8 percent in 2009, after the economy slowed to a 6.8 percent gain in the fourth quarter. The global economy is likely to shrink for the first time since World War II, and trade will decline by the most in 80 years, the World Bank said yesterday. SAIC fell 4.3 percent to 9.26 yuan, the most in a week. China’s vehicle sales growth may slow to 4.7 percent in the first quarter of this year from a year earlier, President Chen Hong said March 7 in Beijing. Vehicle sales rose 22 percent in the first quarter of last year, he said. Chongqing Changan Automobile Co. fell 5 percent to 6.72 yuan. FAW Car Co., a unit of the nation’s second-biggest automaker, declined 3.7 percent to 11.54 yuan. Shandong Gold dropped 3.9 percent to 69.42 yuan. Zhongjin Gold Corp. declined 3.5 percent to 49.70 yuan. Jiangxi Copper sank 3.9 percent to 16.85 yuan, while Yunnan Copper Industry Co. retreated 3.6 percent to 13.81 yuan. Metal Prices Gold for immediate delivery fell as much as 0.5 percent, to $935.10 an ounce. Copper for delivery in three months on the London Metal Exchange fell as much as 1.6 percent to $3,660 a metric ton today, after stockpiles of the metal in China climbed to the highest in more than seven months. Poly Real Estate Group Co. climbed 1.4 percent to 20.68 yuan, after saying property sales in February almost tripled from a year earlier to 2 billion yuan. The week-long lunar New Year holiday fell in February last year and in January this year. Gemdale Corp., based in Shenzhen, advanced 1.2 percent to 9.32 yuan. The following stocks also rose or fell in China trading. China Citic Bank (601998 CH), a unit of China’s largest investment company, gained 6.2 percent to 4.80 yuan, after Chairman Kong Dan said Spain’s Banco Bilbao Vizcaya Argentaria SA was interested in raising its stake. Qiming Information Technology Co. (002232 CH), a software producer, rose 6.6 percent to 24.39 yuan, saying 2008 net income increased 41 percent from a year earlier to 66.2 million yuan. Zhongtong Bus & Holding Co. (000957 CH), a bus manufacturer, climbed 7.8 percent to 6.47 yuan after the Chinese vehicle maker said it plans to make electric coaches for the first time.

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