China data triggers two-day sharemarket slide AUSTRALIA'S sharemarket fell for a second day running as weaker Chinese economic data triggered profit-taking in most sectors of the market following strong gains in recent weeks. The benchmark S&P/ASX 200 closed down 0.5 per cent at 5324.9 after hitting a two-week low of 5317.4. Today's decline marked the first two-day fall in three weeks. In the preceding three weeks, the index rose as much as 7 per cent. Recent strong gains in Australian shares were fuelled by improving US economic data and the Federal Reserve's statement that it is likely to keep short-term US interest rates near zero well past the point that unemployment falls below 6.5 per cent. "Weaker Chinese economic data is the main thing weighing on our market today, but volumes are still very light and I don't think this fall is of great concern," said Macquarie Private Wealth investment adviser James Rosenberg. Among companies geared to China's economy, Fortescue Metals fell 1.9 per cent, Rio Tinto fell 0.9 per cent and BHP Billiton declined 0.6 per cent. Financial stocks outperformed, with Commonwealth Bank, Macquarie and QBE rising as much as 0.4 per cent. HSBC's China services Purchasing Managers' Index fell to 50.9 in December from 52.5 in November, pushing China's Shanghai Composite down about 2 per cent today. A slowdown in China's economy contributed to the underperformance of Australian shares last year, as China's share market fell 6.8 per cent and Australian mining services companies suffered from a string of profit warnings. Increasing share issuance in Australia was another potential restraint on shares. Morgan Stanley analysts said the number of Australian companies planning initial public share offers in the new year appeared to be strengthening further after a strong rise last year.