Most Chinese stocks fell as a slowdown in the nation's manufacturing growth overshadowed speculation that the government will soon ease monetary policies to spur economic expansion.

Anhui Conch Cement Co and Baoshan Iron Steel Co led a retreat for industrial companies after the Purchasing Managers' Index slid to 50.4 in October, the lowest since February 2009. Poly Real Estate Group Co, the nation's second-largest developer, lost the most in two weeks after SouFun Holdings Ltd said home prices fell for a second month amid price cuts. China Life Insurance Co, the biggest insurer, advanced 2.3 percent after UBS AG said a rebound for equities will boost profits.

The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, added 1.77 points, or 0.1 percent, to 2,470.02 at the close. About six stocks fell for every five that rose. The CSI 300 Index gained 0.1 percent to 2,697.53.

1-year bill yield unchanged

The People's Bank of China kept the yield on one-year bills unchanged at 3.5840 percent for a 10th auction, according to a trader at a primary dealer required to bid at the auctions.

The monetary authority issued 10 billion yuan ($1.6 billion) of the securities on Tuesday.

In February, the central bank published a list of 50 primary dealers allowed to participate in open-market operations, including Industrial Commercial Bank of China Ltd, Agricultural Bank of China Ltd, Bank of China Ltd, China Construction Bank Corp, China Citic Bank Corp, Industrial Bank Co and the Postal Savings Bank of China.

Agriculture fair draws business

The Ninth China Agriculture Trade Fair, which ended in Chengdu on Tuesday, resulted in transactions of more than 60 billion yuan ($9.4 billion), an increase of 4 billion yuan over the 2010 event. More than 2,000 businesses from 15 countries, including the US, Switzerland, the UK and Japan, attended the fair showcasing agricultural products, new agricultural technology, equipment, and agricultural cooperation projects. The fair, the largest of its type in China, drew nearly 10,000 buyers from more than 20 countries. It was the first time that the fair had been held in Western China.

BMS earmarks funds for China

International drugmaker Bristol-Myers Squibb (BMS) is to invest 200 million yuan ($31.4 million) in partnership-building with its counterparts and domestic research institutes on the development and launch of new products in China, Jean-Christophe Pointeau, president of BMS (China) Investment Co Ltd, said on Tuesday.

The US-based company has just launched a diabetes medicine in China in cooperation with UK-based pharmaceutical company AstraZeneca PLC and is in partnership with Pfizer Inc on cardiovascular disease medicine development, which is expected to be launched in the nation next year.

China Daily - Agencies