China's gross domestic product (GDP) growth slowed in the first quarter of 2009 to 6.1 per cent, according to the National Bureau of Statistics.
This is the weakest growth rate since quarterly records began in 1992.
Most Chinese stocks fell after data on the world’s third-largest economy cooled to the slowest pace in almost a decade, raising concern that companies may report lower earnings.
Growth was 6.8 per cent in the last quarter of 2008, but the first quarter GDP figure dropped as exports fell 17 per cent in March.
“The GDP figures and corporate earnings have been disappointing,” said Zhang Ling, a fund manager at ICBC Credit Suisse Asset Management in Beijing, which oversees the equivalent of $7.21 billion.
The Chinese government has said it is aiming for annual growth of 8 per cent and to expand its domestic demand.
China Shenhua Energy and China Coal Energy, the country’s top two coal producers, retreated at least 2 per cent after the statistics bureau said the economy expanded 6.1 per cent in the first quarter.
Yunnan Copper Industry, China’s third-biggest producer of the metal, and Hunan Valin Steel, retreated more than 1 per cent after posting losses.
The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, fell 3.52, or 0.1 per cent, to 2,532.54 as of the 11.30am local-time break.
The measure swung between gains and losses at least five times today. The CSI 300 Index, measuring the bourses in Shanghai and Shenzhen, was little changed at 2,686.29.
The growth was “hard earned” in view of the global recession, Li Xiaochao, a spokesman for the statistic bureau told a news briefing today.
China Southern Airlines, the nation’s biggest carrier by fleet size, slid 4.4 per cent after Deutsche Bank AG and Morgan Stanley cut their recommendations on the stock.
China Cosco Holdings and China Shipping Development gained at least 3 per cent after a measure of world trade rose to the highest in almost two weeks. Shenhua, the nation’s largest coal producer, lost 2.8 per cent to 24.72 yuan.
The Shanghai Composite climbed 8 per cent over the past five days on speculation the government is considering additional stimulus measures to boost consumption and growth.
Agencies