SHANGHAI stocks yesterday declined for a second straight day after data showed that China's imports fell more than expected in February.

The benchmark Shanghai Composite Index fell 0.24 percent to 2,318.61 points. The index lost 1.73 percent for the week.

China's exports rose 21.8 percent year on year to US$139.4 billion last month, but imports dropped 15.2 percent to US$124.1 billion, more than a market-estimated decline of 8.8 percent and against a surge of 28.8 percent in January, data from the General Administration of Customs showed yesterday.

The country posted a trade surplus of US$15.3 billion in February, down from the January figure of US$29.2 billion, data showed.

The customs attributed the decline in imports to fewer working days in February due to the week-long Lunar New Year holiday.

Tao Jinfeng, an analyst with Guotai Junan Futures, said that despite the seasonal factors, the big fall in imports reflected weaker domestic demand, indicating the country's economic recovery is still unstable.

Most property developers retreated after a China Securities Journal report said the government may hike the down payment for second homes to 70 percent and raise the interest rate of mortgage loans to 1.3 times the benchmark rate in cities with rising home prices.

Shanghai Xinmei Real Estate Co fell 5.37 percent to 6.34 yuan (US$1.02). Gemdale Corp shed 1.2 percent to close at 6.33 yuan.