Investors and traders in China’s main financial district in Shanghai are talking about the following before the start of trade today:

*The Dow Jones Industrial Average fell for a third day yesterday, losing 0.6%. U.S. losses were led in part by IT-related companies such as Cisco, and Microsoft and Hewlett-Packard. The continuing decline in U.S. shares may add to worries that slowing global economic growth will harm China’s economy and corporate profits.

*The U.S. dollar closed at a one-and-a-half-month high against China’s currency yesterday. A rising dollar may weigh on shares in China. One concern: a serious global downturn could lead investors to seek a safe haven in the U.S. dollar and U.S. assets and reduce holdings in Chinese assets.

*China Mobile and Xinhua News Agency will work together to set up an Internet search engine, creating a competitor in China to Baidu and Google. Baidu, whose shares trade on the Nasdaq, declined by 1.9% in the U.S. in overnight trading. China Mobile’s U.S.-traded depositary shares gained 2.7%.

*China United Network Communications and unlisted Huawei Technologies are working together to develop 3G telecommunications products for the automobile industry.

*Lipper said Thursday that China’s mutual funds had positive returns in July. Stock funds led the way, gaining an average of 9.2%. The best-performing stock fund was the Everbright Pramerica’s small and medium sized company fund.

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Here are today’s headlines from the front page of the Shanghai Securities News:

– Capital of State Enterprises Is Becoming Concentrated, Total Assets of State Enterprises Exceed 2 Trillion Yuan

–New Policies on Mergers and Reorganization Are Near, Backdoor Listings to Become Key Reform Point

– Xinhua News Agency, China Mobile to Form an “Domestic First Tier, World Leading” Internet Search Engine Company

–Worries about a “Second Bottom” Arise, Global Stocks Fall

–National Development and Reform Commission (NDRC): Global Wheat Prices Won’t Soar

–Consumer Confidence Index Rises for Fifth Consecutive Month — Accurately Invest in Companies Facing Reorganization: The “Wang Yawei Effect” Appears

– Joyson Group to Inject Good-Quality Assets Into ST Liaoyuan Deheng

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Here are today’s headlines from the China Securities Journal:

–RMB Falls to One-and-a-Half- Month Low Against RMB, Rising Dollar Presses A Shares

–100-Yuan Shares: Who’s History? Who Has Staying Power?

–A Share Index Falls Below 2,600, Futures Suggest Opportunity

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Here are today’s headlines from Securities Times:

–Economic Data Is Below Expectations; Global Markets Face Cloud

–New Policies for Cement and Other Industries May Be Delayed, Ministry of Industry and Information Technology Official Says

–Reminbi Mid-Point Declined 247 Basis Points Against Dollar Consumer Confidence Index Rises for Fifth Consecutive Quarter