Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200812/20081224/article_385636.htm
Concern for economy keeps shares down
Created: 2008-12-24
Author:Ding Yining
SHANGHAI'S key stock index dropped more than 4 percent to below 1,900 points yesterday with the market still concerned about the economic outlook after the rate cuts announced by the central bank late on Monday.
The benchmark Shanghai Composite Index sank 4.55 percent, or 90.53 points, to close at 1,897.23 points. Turnover was 66.9 billion yuan (US$9.77 billion), up from 60.4 billion yuan on Monday. Losers outnumbered gainers 840 to 32 and 36 remained unchanged.
The benchmark one-year lending and deposit rates dropped by 0.27 percentage points from yesterday.
"The effect of the cut should not be overestimated and although it may ease the costs of cash-tight enterprises it cannot fundamentally change the downward trend of the economy," China International Capital Corporation Ltd said.
Industrial & Commercial Bank of China slid 2.65 percent to 3.68 yuan. China Construction Bank lost 2.70 percent to 3.97 yuan. Shanghai Pudong Development Bank sank 4.07 percent to 13.66 yuan. China Shipping Development Co Ltd dropped by the daily limit of 10 percent to close at 8.87 yuan as profits in the industry were eclipsed by a worldwide fall in production.
PetroChina lost 4.30 percent to 7.35 yuan. China Life Insurance Co was down 4.77 percent to 19.35 yuan.
China Cosco Holdings Co said in a statement to Shanghai Stock Exchange it is to issue as much as 10 billion yuan of domestic notes to corporate investors to provide operating capital. Its shares fell 6.42 percent to close at 8.16 yuan.
Real estate developers continued to fall. Gemdale Corporation sank 8.64 percent to close at 7.19 yuan.
China Vanke Co lost 4.90 percent to 6.98 yuan.
The benchmark Shanghai Composite Index sank 4.55 percent, or 90.53 points, to close at 1,897.23 points. Turnover was 66.9 billion yuan (US$9.77 billion), up from 60.4 billion yuan on Monday. Losers outnumbered gainers 840 to 32 and 36 remained unchanged.
The benchmark one-year lending and deposit rates dropped by 0.27 percentage points from yesterday.
"The effect of the cut should not be overestimated and although it may ease the costs of cash-tight enterprises it cannot fundamentally change the downward trend of the economy," China International Capital Corporation Ltd said.
Industrial & Commercial Bank of China slid 2.65 percent to 3.68 yuan. China Construction Bank lost 2.70 percent to 3.97 yuan. Shanghai Pudong Development Bank sank 4.07 percent to 13.66 yuan. China Shipping Development Co Ltd dropped by the daily limit of 10 percent to close at 8.87 yuan as profits in the industry were eclipsed by a worldwide fall in production.
PetroChina lost 4.30 percent to 7.35 yuan. China Life Insurance Co was down 4.77 percent to 19.35 yuan.
China Cosco Holdings Co said in a statement to Shanghai Stock Exchange it is to issue as much as 10 billion yuan of domestic notes to corporate investors to provide operating capital. Its shares fell 6.42 percent to close at 8.16 yuan.
Real estate developers continued to fall. Gemdale Corporation sank 8.64 percent to close at 7.19 yuan.
China Vanke Co lost 4.90 percent to 6.98 yuan.
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