Shanghai Composite Index dragged below 2,000 as China’s stocks fall

China’s stocks fell, dragging the Shanghai Composite Index below 2,000 for the first time in almost six months, as factory output and business spending slowed while concern grew that share sales would divert funds.

China Shenhua Energy Co., the nation’s largest coal producer, slid 1% to a record low as Beijing and Shanghai stepped up measures to curb pollution. Anhui Conch Cement Co., the biggest cement producer, tumbled more than 3% in Hong Kong and Shanghai. Neway Valve (Suzhou) Co., which surged 43% last week in its market debut after an initial public offering, plunged 10%. Leshi Internet Information & Technology (Beijing) Co. retreated 4.2%.

The Shanghai index rose above 2,000 in February 2009 after a 4 trillion yuan ($661bn) economic stimulus plan fuelled a bull-market rally.