(RTTNews) - The Chinese market closed lower for a second day on Friday, led by property stocks. The benchmark Shanghai Composite Index closed down 18.82 points or 0.65% at 2,856.63. After rising about 9% in the first three days of the week amid strong first-half earnings forecast by blue chip banks and property developers, the key index finished the week with 7.0% gains. The key index posted gains for the first week after seven weeks of losses.

Top property developer China Vanke plunged 3.9% and Gemdale fell 4.5%. DBS Group Research said in a note Thursday that China’s property sales are expected to remain sluggish in the current quarter following a slowdown in June.

But Chalco gained 2.9% and Yunnan Aluminium jumped 3.0% after aluminum prices hit reord levels in London on Thursday following China’s top 20 smelters’ decision to cut output by up to 10%.

Among steelmakers, Angang Steel lost 2.2% after the company warned of a drop in 2008 net proft due to changes in accounting standards. Baoshan Iron & Steel fell 2.5%.

In the airline sector, China Southern Airlines dropped 1.5%. Index heavyweight PetroChina shed 1.2% after crude for August delivery rose $5.60 to $141.65 a barrel on the New York Mercantile Exchange onThursday.

Banks closed mixed. China Construction Bank lost 1.1%, but China CITIC Bank rose 0.7%.

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