SHARES in Shanghai fell today, weighed down by building material makers due to concerns that slower economic growth may reduce market demand and companies' profits may be eroded.

The Shanghai Composite Index was down 0.77 percent to 2,849.07. Turnover trimmed to 95.79 billion yuan (US$14.74 billion).

Cement, steel and non-ferrous metal makers were among the biggest drags today.

Anhui Chaodong Cement Co shed 6.03 percent to 18.09 yuan. Xinjiang Bayi Iron & Steel Co plunged 4.40 percent to 13.46 yuan. Ningbo Fubang Jingye Group Co lost 4.47 percent to 15.83 yuan.

Industrial and Commercial Bank of China, the world's biggest bank by market value, paced declines among lenders, amid rising money-market rates that indicate a tighter liquidity.

ICBC declined 1.53 percent to 4.51 yuan. Huaxia Bank retreated 3.54 percent to 11.71 yuan.

Money-market rate climbed the most in three months following China's latest move to raise banks' reserve ratio to a record high. The seven-day repurchase rate, a gauge of interbank funding availability, has surged 224 basis points in the past two trading days after the People's Bank of China said it will raise lenders' reserve requirement on Wednesday.

"The market is pressured by expectations that companies' abilities to make profits are now gloomy under high prices of commodity materials while monetary tightening will not be close to an end any time soon," Huang Dongsheng, an analyst with Guodu Securities Co.

"Shares will continue to be volatile until either of these two factors starts to change," Huang added.