Subprime rocks Shanghai boat

SHANGHAI: The Shanghai stock market fell 2.14 percent yesterday, led by the financial large-caps, amid concerns about the US credit crisis arising from the subprime mortgage woes.

Economists and analysts said investors' worries stemmed mainly from the potential risks to China's economic growth caused by the possible recession in US resulting from the credit problem, despite reassuring words from US Treasury Secretary Henry Paulson.

Reuters quoted him as saying the financial system and the US economy are strong enough to withstand the current crisis without triggering a recession.