An investor looks at the market trend in a stock exchange in Hangzhou, Zhejiang province, July 25, 2011. [Photo / Xinhua]

The collision will slow the pace of railway construction, according to Guotai Junan Securities Co. The growth of equipment companies will be affected, it said.

The railway ministry will postpone auctions for equipment, Shenyin & Wanguo Securities Co analysts said, cutting their stock ratings for CSR and CNR to "neutral".

The train accident, along with "constant malfunctioning" of the Beijing-Shanghai bullet train, may dampen demand for property in cities along new railway lines, Credit Suisse said.

Land sales in "several" cities along the new Beijing-Shanghai high-speed railway line surged in 2009 and 2010, analysts including Du Jinsong at Credit Suisse wrote in a report.

China Vanke, the nation's largest developer by market value, slid 3.1 percent to 8.16 yuan. Poly Real Estate Group Co slipped 3.3 percent to 10.37 yuan.

China Eastern Airlines Corp led a rally for airlines after Barclays Plc said the train crash will spur demand for alternative transport. China Eastern, the second-largest carrier, added 2 percent to 5.13 yuan.

China Southern Airlines Co, the biggest carrier, gained 1 percent to 8.06 yuan.

"We expect travelers to gradually turn to alternative transport means, including expressways," Patrick Xu and Jon Windham, analysts at Barclays, wrote in a report.

PetroChina Co, the nation's largest oil producer, lost 2 percent to 10.37 yuan, set for its lowest close since Sept 30.

Jiangxi Copper Co, the biggest copper producer, slid 2.4 percent to 34.91 yuan.

Bloomberg News