May 13 (Bloomberg) -- Chinese stocks fell after the nation's strongest earthquake in 58 years killed almost 10,000 people and disrupted energy and raw-materials output.

PetroChina Co., the nation's largest oil producer, declined after the government ordered wells to be shut in quake-hit areas. China Life Insurance Co. dropped on concern claims will multiply. Anhui Conch Cement Co. jumped the most in more than two weeks while Yunnan Baiyao Group Co. surged by the daily 10 percent limit on speculation demand for reconstruction materials and medical supplies will increase.

The CSI 300 Index, which tracks stocks traded in Shanghai and Shenzhen, lost 89.84, or 2.3 percent, to 3,815.08 as of 1:06 p.m. local time, the most since May 7. More than four stocks fell for each that advanced and nine of the 10 industry groups were lower.

``There'll be knock-on effects from the quake,'' said Ivan Leung, Hong Kong-based chief investment strategist at JPMorgan Private Bank, which oversees $400 billion in assets. ``There'll be infrastructure constraints.''

The Shanghai Composite Index, which tracks stocks on the larger of the nation's two exchanges, fell 2.8 percent to 3,523.94. The Shenzhen Composite Index declined 1.8 percent to 1,092.37.

Banks Decline

China Merchants Bank Co. declined 2.9 percent to 30.80 yuan and Shanghai Pudong Development Bank Co. slipped 3.7 percent to 28.20 yuan after the central bank ordered lenders to set aside a record 16.5 percent in deposits as reserves.

The Shanghai and Shenzhen stock exchanges suspended trading in 66 listed companies based in Sichuan province and Chongqing city pending updates from the companies.

PetroChina declined 3.8 percent to 17.19, the most since April 28. China Petroleum & Chemical Corp., which said there hasn't been a ``huge impact'' on its operations from the earthquake, dropped 3.4 percent to 11.68 yuan. China Life fell 6 percent to 31.20 yuan, the most since May 7.

Companies must evacuate their workers from the vicinity of the quake and can't resume output until work conditions allow for safe operation, the Beijing-based State Administration of Work Safety said in a statement posted on its Web site today.

Anhui Conch, the nation's largest cement maker, rose 5.5 percent to 64.19 yuan. Huaxin Cement Co., a unit of Lafarge SA, the world's biggest cement maker, jumped by the 10 percent daily limit to 25.56 yuan.

Drugmakers Advance

Yunnan Baiyao, based in Kunming, jumped 2.93 yuan to 32.27. Jilin Aodong Medicine Industry Groups Co., the nation's largest pharmaceuticals maker by market value, advanced 1.2 percent to 42.78 yuan. Jiangsu Hengrui Medicine Co., a maker of pain- killers and anti-infection medicines, climbed 1.8 percent to 43.18 yuan.

A measure of healthcare stocks on the CSI 300 gauge was the only industry group to advance.

The following shares also rose or fell in China. Stock symbols are in parentheses after company names:

Retailers: China's retail sales climbed at the fastest pace since at least 1999. Sales rose 22 percent to a record 814.2 billion yuan ($116 billion) in April after gaining 21.5 percent in March, the statistics bureau said today. That compared with the 21 percent median estimate in a Bloomberg News survey of economists.

Beijing Wangfujing Department Store Group Co. (600859 CH), which operates department stores across China, rose 2.4 percent to 47.10 yuan. Shanghai Bailian Group Co. (600631 CH), another department store operator, added 1 percent to 16.10 yuan.

Automakers: China's vehicle sales rose 14 percent in April, the slowest pace in almost two years. Sales of passenger cars and commercial vehicles rose to 922,600 in April, the China Association of Automobile Manufacturers said in an e-mailed statement yesterday. Vehicle sales grew at a rate of 21 percent in the first three months of the year.

SAIC Motor Corp. (600104 CH), China's biggest automaker, declined 4 percent to 14.01. FAW Car Co.(000800 CH), the Chinese partner of Mazda Motor Corp., fell 4.8 percent to 14.45.

To contact the reporter responsible for this story: Chua Kong Ho in Shanghai at Kchua6@bloomberg.net

Last Updated: May 13, 2008 01:25 EDT