CHINA’S shares finished sharply lower yesterday, as worries stemming from the missing Malaysia Airlines airplane pressured stocks of airlines and insurers, while concerns about a slowing economy resurfaced following the weekend’s inflation data.

    The benchmark Shanghai Composite Index broke below the psychologically-important level of 2,000, finishing down 2.86 percent at 1,999.07. The Shenzhen Composite Index fell 3.47 percent to 1,064.06.

    An investigation into what happened to a missing Malaysia Airlines flight bound for Beijing dragged into the third day with little conclusive evidence, although a search and rescue plane spotted suspected fragments of the aircraft.

    “Now that people are worried about safety in the air, stock market investors are losing confidence in relevant travel sectors,” said Tang Yonggang, an analyst with Hongyuan Securities. The flight, which vanished early Saturday having taken off from Kuala Lumpur, carried 227 passengers, more than half of whom were Chinese.

    China Eastern Airlines Corp. was down 3.56 percent and China Southern Airlines Co. was off by 3.49 percent.

    China Life Insurance Co. dropped 3.67 percent and Ping An Insurance Co. of China Ltd. lost 3.62 percent.

    Market losses also came on the back of disappointing economic data over the weekend. China posted lower inflation in February, providing good news for consumers but suggesting the economy is losing steam — consumer prices rose a modest 2 percent year over year. Exports in February fell 18.1 percent from a year earlier, following a 10.6 percent rise in January, the General Administration of Customs said Saturday. Imports rose 10.1 percent, yielding a trade deficit of US$23 billion for the month versus a surplus of US$32 billion in January.

    “This might be related to seasonal factors with the Lunar New Year just past but it was lower than market expectations,” said Deng Wenyuan, analyst with Soochow Securities.

    Media stocks retreated with investors taking profits following steep gains recently. Guangdong Guangzhou Daily Media Co. was off 9.1 percent and Zhejiang Daily Media Group Co. was down 9 percent.

    Metals-related stocks weakened after falling copper prices Friday exasperated worries about China’s economic slowdown and its impact on demand for industrial metals. (SD-Agencies)