Nov. 28 (Bloomberg) -- China’s stocks fell, led by financial and commodity companies, on renewed concern earnings growth will decline in a slowing economy.

Ping An Insurance (Group) Co. slumped 5.9 percent as Reuters reported the company has asked the government for help to seek compensation from Belgium over losses in Fortis. Baoshan Iron & Steel Co., the country’s biggest steelmaker, dropped 1.8 percent after its parent company said it’s facing a “most difficult” period. Shanghai International Airport Co., operator of China’s second-busiest airfield, slid 4.2 percent on concern it will miss its traffic target.

“I don’t see investor jitters fading in the short term and expect the market to fall further,” said Wu Kan, a fund manager in Shanghai at Dazhong Insurance Co., which oversees $285 million. “Even after the aggressive rate cut, investors are still overwhelmingly concerned about slowing earnings growth.”

The CSI 300 Index, which tracks yuan-denominated A shares listed on China’s two exchanges, declined 40.55, or 2.2 percent, to 1,829.92 erasing yesterday’s 1.5 percent rally that came on the back of the biggest interest-rate cut in 11 years.

Suning Appliance Co. jumped to an almost three-month high on a police investigation of Gome Electrical Appliances Holdings Ltd., its biggest rival.

The benchmark stock index dropped 4.7 percent this week and is down 66 percent this year on concern the economy is deteriorating more quickly as the global financial crisis spreads. Zhang Ping, chairman of the National Development and Reform Commission said yesterday in Beijing that more measures were needed to revive growth. The government announced on Nov. 9 a 4 trillion yuan ($585.4 billion) stimulus spending plan.

Pudong Bank, Baoshan

Shanghai Pudong Development Bank Co. fell 7.2 percent to 11.99 yuan. Industrial Bank Co., part-owned by a unit of HSBC Holdings Plc, retreated 6.7 percent, to 13.48 yuan. Industrial & Commercial Bank of China Ltd., the nation’s biggest listed lender, dropped 3 percent to 3.83 yuan.

China’s economy may grow at a slower pace in the fourth quarter as the global financial crisis hurts exports and damps investor and consumer confidence, National Bureau of Statistics officials led by Li Xiaochao, wrote in a report published on the finance ministry’s Web site yesterday.

The country faces an “arduous” task in maintaining “steady and relatively” fast growth next year, the statisticians said, without giving specific forecasts.

Economic Growth

Shanghai Airport retreated 4.2 percent to 11.02 yuan, rounding out a 12 percent weekly decline. Shanghai’s Pudong and Hongqiao airports forecast a combined 86.8 million passengers in 2010. With global travel slowing, the target may not be met, said Wang Guangdi, vice president of Shanghai Airport Authority, at a conference today.

Baoshan Steel lost 1.8 percent to 5.04 yuan. Output, sales and profit at parent Baosteel Group Corp. have plunged, and the company should cut capital outlay, General Manager He Wenbo said in a regular corporate newsletter. Baoshan Steel last month said it may post a loss in the fourth quarter on falling domestic steel prices that have dropped 40 percent since a June peak.

China’s economy grew 9 percent between July and September, the slowest pace in five years, as faltering global demand trimmed exports. The World Bank this week lowered its forecast for China’s growth in 2009 to 7.5 percent, which would be the smallest gain in almost two decades.

Suning Appliance, China’s biggest home appliance retailer by market value, jumped 8.3 percent to 18.18 yuan, the highest close since Sept. 1. Rival Gome Electrical Appliances Holdings Ltd.’s Chairman Huang Guangyu and Chief Financial Officer Zhou Ya Fei are being investigated in relation to a “suspected economic crime,” the company said today. Chief Executive Officer Chen Xiao has been named acting chairman and Fang Wei acting chief financial officer, it said.

The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, fell 2.4 percent to 1,871.16. The Shenzhen Composite Index lost 0.9 percent to 539.37.

The following companies were among the most active in China’s markets. Stock symbols are in brackets after companies’ names.

China United Telecommunications Corp. (600050 CH), which controls the nation’s second-largest cell phone operator, lost 0.22 yuan, or 3.9 percent, to 5.38. Credit Suisse Group lowered its recommendation on the company’s Hong Kong-listed unit China Unicom (Hong Kong) Ltd. (762 HK) to “underperform” from “neutral” because of its “aggressive investment plan and rising expenses,” according to a research note today.

Dongfang Electric Corp. (600875 CH), China’s second-biggest maker of power equipment, jumped 2.27 yuan, or 9.9 percent, to 25.10. The 65 million shares sold in a public rights offer last week will be available for trading on the exchange starting Dec. 2, said the company in a statement today.

Rizhao Port Co. (600017 CH), China’s fourth-largest port for handling coal, declined 0.41 yuan, or 8.4 percent, to 4.50. The parent company bought 11.9 million shares in the company through the Shanghai Stock Exchange after an initial purchase of 400,000 million shares on Sept. 22, Rizhao Port said in a statement. The parent now controls 55.43 percent of the company, it said.

Suning Universal Co. (000718 CH), the developer based in the northeast province of Jilin, slid 0.27 yuan, or 4.2 percent, to 6.11. Suning Universal said its parent bought a combined 12.8 million shares, raising its stake by 0.9 percent to 27.8 percent. The parent paid an average of 5.38 yuan per share through the Shenzhen Stock Exchange as of yesterday.

Zijin Mining Group Co. (601899 CH), China’s largest gold producer, fell 0.17 yuan, or 4 percent, to 4.06. The company said it has set aside 1 billion yuan to buy stakes in listed mining companies at home and overseas, according to an exchange filing late yesterday.

To contact the reporter on this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net

Last Updated: November 28, 2008 04:32 EST