Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200806/20080613/article_363091.htm
Index falls at midday as financial shares continue slide
Created: 2008-6-13 12:23:11
Author:Lydia Chen
SLIDING financial stocks continued to drag Shanghai's key stock index down this morning as jittery investors worry high inflation may trigger further credit tightening by the government.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, lost 1.28 percent, or 37.93 points, to 2,919.61 at 11:30am.
Losers in the Shanghai market outnumbered gainers 623 to 166 while 16 were unchanged.
The Shanghai index has slid since the central bank ordered lenders to set aside record reserves to curb inflation last Saturday.
The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was down 1.84 percent, or 16.36 points, to 874.63.
Shares continued to fall even after the National Bureau of Statistics announced that the country's inflation rate rose at a slower pace of 7.7 percent last month.
The consumer price index, the main gauge of inflation, increased 7.7 percent last month year on year, following jumps of 8.5 percent in April and 8.3 in March.
The index jumped to a near 12-year high of 8.7 percent in February.
But analysts said this news did little to lift the stocks as there had been speculation over the figure in the market earlier in the week and investors are concerned that the CPI is not likely to head south.
Securities and property shares were among stocks losing ground this morning amid concerns that a falling market will hurt earnings.
Citic Securities Co, China's biggest publicly traded brokerage, sank 6.07 percent to 28.03 yuan (US$4.06) while Hongyuan Securities lost 4.85 percent to 19.60 yuan.
China Vanke, the nation's biggest developer, lost 4.09 percent to 16.64 yuan while Poly Real Estate, the second biggest, slumped 3.85 percent to 14.49 yuan.
But banks found some support after yesterday's wide sell-off this morning.
China Minsheng Banking Corp, the country's first privately owned bank, dipped 0.17 percent to 5.95 yuan.
Minsheng seeks to raise at least 3.14 billion yuan by selling a 3.26 percent stake in Haitong Securities Co. Haitong Securities, the country's second-largest listed brokerage, slumped 7.46 percent, to 24.80 yuan.
Suning Appliance Co, China's biggest home appliance retailer by market value, buckled 3.85 percent to 42.98 yuan. The company said it will cooperate with a government probe into whether the company hid sales to avoid paying taxes, claims that it denies. The examination is "normal'' and "helpful,'' the retailer said.
On the positive side, Wuhan Iron & Steel Group, China's fifth-biggest steelmaker, added 1.10 percent to 12.90 yuan. The company plans to spend 1.5 billion yuan to increase its stake in Pingdingshan Coal Co, China's fifth largest producer of the fuel, it said today.
Airlines also enjoyed a good morning as the mainland and Taiwan signed an agreement today to open direct weekend charter flights and allow mainland tourists to the island.
Air China Ltd, the world's biggest airline by market value, edged up 0.40 percent, to 10.15 yuan. Shanghai Airlines Co, the city's second-biggest carrier, gained 4.27 percent to 6.59 yuan.
Flights and the first tour groups to Taiwan will begin July 4, Kao Koong-lian, vice chairman of Taiwan's Straits Exchange Foundation, said in Beijing yesterday.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, lost 1.28 percent, or 37.93 points, to 2,919.61 at 11:30am.
Losers in the Shanghai market outnumbered gainers 623 to 166 while 16 were unchanged.
The Shanghai index has slid since the central bank ordered lenders to set aside record reserves to curb inflation last Saturday.
The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was down 1.84 percent, or 16.36 points, to 874.63.
Shares continued to fall even after the National Bureau of Statistics announced that the country's inflation rate rose at a slower pace of 7.7 percent last month.
The consumer price index, the main gauge of inflation, increased 7.7 percent last month year on year, following jumps of 8.5 percent in April and 8.3 in March.
The index jumped to a near 12-year high of 8.7 percent in February.
But analysts said this news did little to lift the stocks as there had been speculation over the figure in the market earlier in the week and investors are concerned that the CPI is not likely to head south.
Securities and property shares were among stocks losing ground this morning amid concerns that a falling market will hurt earnings.
Citic Securities Co, China's biggest publicly traded brokerage, sank 6.07 percent to 28.03 yuan (US$4.06) while Hongyuan Securities lost 4.85 percent to 19.60 yuan.
China Vanke, the nation's biggest developer, lost 4.09 percent to 16.64 yuan while Poly Real Estate, the second biggest, slumped 3.85 percent to 14.49 yuan.
But banks found some support after yesterday's wide sell-off this morning.
China Minsheng Banking Corp, the country's first privately owned bank, dipped 0.17 percent to 5.95 yuan.
Minsheng seeks to raise at least 3.14 billion yuan by selling a 3.26 percent stake in Haitong Securities Co. Haitong Securities, the country's second-largest listed brokerage, slumped 7.46 percent, to 24.80 yuan.
Suning Appliance Co, China's biggest home appliance retailer by market value, buckled 3.85 percent to 42.98 yuan. The company said it will cooperate with a government probe into whether the company hid sales to avoid paying taxes, claims that it denies. The examination is "normal'' and "helpful,'' the retailer said.
On the positive side, Wuhan Iron & Steel Group, China's fifth-biggest steelmaker, added 1.10 percent to 12.90 yuan. The company plans to spend 1.5 billion yuan to increase its stake in Pingdingshan Coal Co, China's fifth largest producer of the fuel, it said today.
Airlines also enjoyed a good morning as the mainland and Taiwan signed an agreement today to open direct weekend charter flights and allow mainland tourists to the island.
Air China Ltd, the world's biggest airline by market value, edged up 0.40 percent, to 10.15 yuan. Shanghai Airlines Co, the city's second-biggest carrier, gained 4.27 percent to 6.59 yuan.
Flights and the first tour groups to Taiwan will begin July 4, Kao Koong-lian, vice chairman of Taiwan's Straits Exchange Foundation, said in Beijing yesterday.
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