China's key stock index in Shanghai ended the morning session 2.39 percent lower on Thursday amid worries that the central authorities might introduce more control measures to cool off the economy.

The benchmark Shanghai Composite Index, which covers both A- and B-shares, slid to 3,526.00 points, 86.40 points lower from the 3,612.40 points at the closure on Wednesday.

The Component Index on the smaller Shenzhen Stock Exchange lost 3.37 percent to close the morning session at 10,050.96 points.

Wan Bing, an analyst with Guangfa Securities, said the central bank might raise interest rate again after the National Bureau of Statistics release first-quarter economic date Thursday afternoon.

Analysts have highlighted the forecast for China's economic growth rate in the first three month to up to 11 percent. Many also said inflation in March was likely to exceed three percent, the control target set by the People's Bank of China for the whole of 2007.

Financial and real estate stocks led the losses. Heavyweights Industrial and Commercial Bank of China lost 1.1 percent to 5.37 yuan, and Bank of China slid 1.23 percent to 5.60 yuan.

The Shanghai Pudong Development Bank went down 3.92 percent to 27.68 yuan.

China Life, the country's biggest insurer, went down 1.86 percent to 35.90 yuan. Citic Securities, the biggest publicly traded brokerage, fell 3.17 percent to 47.90 yuan.

China Vanke, the nation's largest publicly traded developer, dropped 5.22 percent to 17.78 yuan.

Liu Kaizhong, an analyst with the Changjiang Securities, said investors should start to reduce stock holdings for safer earnings after recent market rally.

Editor: Yan