The battle against the SARS [Severe Acute Respiratory Syndrome] virus in Beijing remains severe, acting Mayor Wang Qishan said on Wednesday.

"As the infection source has not yet been cut off, numbers of confirmed and suspected SARS cases remain high," Wang said.

Beijing is currently the hardest-hit area in the world, with about 1,347 reported SARS cases and 66 deaths.

SARS has killed 148 people in China and infected more than 3,300 since it emerged in the southern province of Guangdong late last year. Worldwide, it has killed more than 350 people and infected more than 5,750.

Wang replaced Meng Xuenong, who was sacked 10 days ago along with Health Minister Zhang Wenkang for covering up the extent of the SARS spread.

The number of infections in Beijing has shot up from 37 since China began reporting more honest figures about SARS from April 20.

The city has suspended school classes till May 7, cordoned off hospitals hard hit by SARS, shuttered public theatres and cinemas for two weeks and quarantined nearly 10,000 people suffering from SARS or who have come in contact with infected people.

It has also designated more than a dozen hospitals to treat SARS and has thrown up a brand new hospital solely to handle sufferers of the disease.

"Due to all these measures I think the epidemic can be brought under control," Wang said.

Still, Wang acknowledged there is 'mass panic' in Beijing, which has seen frenzied buying of medicines and staple foods.

"Due to a shortage of beds at designated hospitals, not all suspected SARS patients can be hospitalised in a timely manner," Wang said. "As the panic of population has not yet been alleviated, a great deal of work is needed to ensure social stability.