Chinese shares fall 0.67 percent in morning trade

Chinese share prices fell 0.67 percent in Tuesday morning trade amid concerns of further steps to cool the country's economy after data showed record-high monthly inflation, dealers said.

Official figures Tuesday showed China's inflation rate spiked to 8.7 percent for February, a new monthly record following an 11-year high of 7.1 percent in January.

The benchmark Shanghai Composite Index, which covers both A and B shares, shed 27.75 points to 4,118.55.

Investors fretted that moves to cool the economy to curb inflation could hit corporate profits too, dealers said.

China raised interest rates six times last year in an effort to control inflation and stop the economy from overheating. Officials have said recently that there was scope for borrowing costs to rise further.

Analysts said that the market was also sensitive to declines on Wall Street, particularly with more negative subprime news emerging at private equity group Blackstone, in which China owns shares.

The Shanghai A-share Index fell 28.91 points or 0.66 percent to 4321.44 points. The Shenzhen A-share index was down 17.35 points or 1.25 percent to 1,370.82.

(Agencies)