Spokesman Wang Jian said investors were remembering the effects of the bird-flu outbreak in 2003.

"But market worries will be temporary. The market in Hong Kong is reacting, although not much. Confidence is already gaining," he said.

Guo Yang, an analyst with Orient Securities Co Ltd, said the outbreak would affect travel spending by people living in the central and eastern parts of China, but that he expected the effect on travel-related stocks to be short-term.

Kong Wei, the manager of China Comfort Travel's City Plaza branch in Suzhou, Jiangsu province, said inquiries had dropped 30 percent since seven people were first reported to have died from the virus.

"As most travel packages are booked in advance, we have not been affected so far. But some domestic routes have been affected, resulting in a boom for overseas travel," she said.

Kong added that in 2003, there was literally no business for a whole month.