Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200806/20080627/article_364793.htm
Shanghai index dives 5.3% on interest rate concerns
Created: 2008-6-27 15:39:45
Author:Lydia Chen
SHANGHAI'S key stock index plunged nearly 5.3 percent today on speculation the government will increase interest rates to help tame inflation.
The Shanghai Composite Index lost 5.29 percent, or 153.42 points, to 2,748.43 at 3pm. The index is comprised of yuan-denominated A shares and hard-currency B shares. The index lost 2.94 percent this week.
Losers in the Shanghai market outnumbered gainers 745 to 33.
The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was down 6.02 percent, or 50.97 points, to 795.86.
Blue chips across the board suffered sell-offs today. Shanghai Pudong Development Bank Co dropped on concern lending growth will slow. China Vanke Co led property developers lower on concern access to financing for real estate will be restricted. China Petroleum & Chemical Corp and Air China Ltd fell after crude oil traded near a record high.
The Shanghai key index has fallen 48 percent this year on concern official measures to control inflation will hurt earnings growth. The central bank has ordered lenders to set aside a record amount of money in reserve after raising interest rates six times last year.
Profit growth at industrial companies slowed to 20.9 percent in the first five months this year from 42.1 percent a year earlier, the National Bureau of Statistics said today.
Consumer prices rose 7.7 percent in May, down from April's 8.5 percent pace, which was the fastest in almost 12 years. Central bank Governor Zhou Xiaochuan last week said his bank may formulate "stronger policies" to tackle price increases.
Pudong Bank slid 6.28 percent to 22.99 yuan (US$3.34) while Industrial & Commercial Bank of China, the biggest lender in the country, slumped 3.09 percent to 5.01 yuan.
China Vanke, the biggest developer, lost 7.28 percent to 9.04 yuan. Poly Real Estate, the second biggest, shed 9.53 to 13.29 yuan.
China Petroleum & Chemical Corp, known as Sinopec, the biggest oil refiner, sank 9.12 percent to close at 10.27 yuan. PetroChina, the nation's largest oil producer and the biggest stock by market capitalization, fell 3.47 percent to 15 yuan.
Sinopec plans to buy oil field service maintenance assets from its parent for 1.56 billion yuan to boost earnings, it said in a statement to the Hong Kong Stock Exchange late yesterday.
Air China, the largest carrier in the country by market value, sank 8.47 percent to 8.11 yuan while China Southern Airlines, the biggest by fleet size, dived 9.47 percent to 6.79 yuan. Shanghai-based China Eastern Airlines shed 9.70 percent to 6.42 yuan.
Air China said it agreed to buy 20 Airbus A330 wide-body planes with a list price of US$3.82 billion to increase flight frequency from its Beijing base.
Crude oil futures shot above US$140 yesterday after OPEC's president said crude prices could rise well above US$150 a barrel this year.
Light, sweet crude crossed the US$140 level minutes before the New York Mercantile Exchange closed yesterday, then retreated slightly to post a gain of US$5.09 and a record close of US$139.64. In after-hours electronic trading, prices rose as high as US$140.39.
In London, August Brent crude futures increased US$5.50 to settle at US$139.83 on the ICE Futures Exchange.
Elsewhere, FAW Car Co, the Chinese partner of Mazda Motor Corp, sank 9.95 percent to 8.42 yuan. The company will sell about 160 million yuan worth of cars to the export and import unit of its parent company China FAW Group Corp, it said in a statement to Shenzhen Stock Exchange today.
Jiangling Motors Corp, Ford Motor Co's Chinese commercial vehicle partner, said it received a government subsidy of 164 million yuan and will include it in its earnings, it said in a statement to the Shenzhen Stock Exchange today. The stock lost 9.95 percent to 9.14 yuan.
The Shanghai Composite Index lost 5.29 percent, or 153.42 points, to 2,748.43 at 3pm. The index is comprised of yuan-denominated A shares and hard-currency B shares. The index lost 2.94 percent this week.
Losers in the Shanghai market outnumbered gainers 745 to 33.
The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was down 6.02 percent, or 50.97 points, to 795.86.
Blue chips across the board suffered sell-offs today. Shanghai Pudong Development Bank Co dropped on concern lending growth will slow. China Vanke Co led property developers lower on concern access to financing for real estate will be restricted. China Petroleum & Chemical Corp and Air China Ltd fell after crude oil traded near a record high.
The Shanghai key index has fallen 48 percent this year on concern official measures to control inflation will hurt earnings growth. The central bank has ordered lenders to set aside a record amount of money in reserve after raising interest rates six times last year.
Profit growth at industrial companies slowed to 20.9 percent in the first five months this year from 42.1 percent a year earlier, the National Bureau of Statistics said today.
Consumer prices rose 7.7 percent in May, down from April's 8.5 percent pace, which was the fastest in almost 12 years. Central bank Governor Zhou Xiaochuan last week said his bank may formulate "stronger policies" to tackle price increases.
Pudong Bank slid 6.28 percent to 22.99 yuan (US$3.34) while Industrial & Commercial Bank of China, the biggest lender in the country, slumped 3.09 percent to 5.01 yuan.
China Vanke, the biggest developer, lost 7.28 percent to 9.04 yuan. Poly Real Estate, the second biggest, shed 9.53 to 13.29 yuan.
China Petroleum & Chemical Corp, known as Sinopec, the biggest oil refiner, sank 9.12 percent to close at 10.27 yuan. PetroChina, the nation's largest oil producer and the biggest stock by market capitalization, fell 3.47 percent to 15 yuan.
Sinopec plans to buy oil field service maintenance assets from its parent for 1.56 billion yuan to boost earnings, it said in a statement to the Hong Kong Stock Exchange late yesterday.
Air China, the largest carrier in the country by market value, sank 8.47 percent to 8.11 yuan while China Southern Airlines, the biggest by fleet size, dived 9.47 percent to 6.79 yuan. Shanghai-based China Eastern Airlines shed 9.70 percent to 6.42 yuan.
Air China said it agreed to buy 20 Airbus A330 wide-body planes with a list price of US$3.82 billion to increase flight frequency from its Beijing base.
Crude oil futures shot above US$140 yesterday after OPEC's president said crude prices could rise well above US$150 a barrel this year.
Light, sweet crude crossed the US$140 level minutes before the New York Mercantile Exchange closed yesterday, then retreated slightly to post a gain of US$5.09 and a record close of US$139.64. In after-hours electronic trading, prices rose as high as US$140.39.
In London, August Brent crude futures increased US$5.50 to settle at US$139.83 on the ICE Futures Exchange.
Elsewhere, FAW Car Co, the Chinese partner of Mazda Motor Corp, sank 9.95 percent to 8.42 yuan. The company will sell about 160 million yuan worth of cars to the export and import unit of its parent company China FAW Group Corp, it said in a statement to Shenzhen Stock Exchange today.
Jiangling Motors Corp, Ford Motor Co's Chinese commercial vehicle partner, said it received a government subsidy of 164 million yuan and will include it in its earnings, it said in a statement to the Shenzhen Stock Exchange today. The stock lost 9.95 percent to 9.14 yuan.
Copyright © 2001-2009 Shanghai Daily Publishing House