China shares are expected to open lower with sentiment remaining fragile following a nearly 10 pct drop in the composite index over the previous three trading days, with inflation fears re-asserting themselves following the release of July CPI and PPI data this week, dealers said.

They said local investors will also take heed of weakness on Wall Street after downbeat news from JPMorgan Chase & Co. The Dow Jones industrial average fell 1.19 pct.

Yesterday, the benchmark Shanghai Composite Index was down 12.88 points or 0.52 pct at 2,457.20, the lowest closing level in 19 months.

Analysts also noted that turnover in the Shanghai and Shenzhen A-share markets was less than 50 bln yuan yesterday, the lowest level in 20 months.

Tiny turnover is unlikely to support a significant rebound on the market, they noted.

China Southern Airlines could come under pressure. The company said it carried 5.34 mln passengers in July, down 1.9 pct from a year earlier.

Property stocks may be active after the National Development and Reform Commission (NDRC) announced late yesterday that property prices in 70 major Chinese cities rose 7.0 pct year-on-year in July, down from 8.2 pct in June.

(1 usd = 6.8 yuan)