Shanghai shares tumbled to a seven-month low on May 11 after producer price inflation cooled more than expected and concerns lingered over tightening financial regulations. The Shanghai Composite Index (SCI) fell to 3,052.79 points, losing 7.18% from this year’s high on April 11. The tech-heavy startup board Chinext fell 1.7% to end at a 27-month low. The increase in China’s Producer Price Index (PPI) slowed further in April, in a sign manufacturing activity may be losing momentum. The soft data, combined with slightly slower growth in manufacturing activity, reinforces analysts’ views that China’s economic expansion remains solid but is starting to moderate after a surprisingly strong start of the year. Tougher financial regulations have been a major concern for investors, many of whom fear the measures could go too far and hurt growth.