Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200812/20081231/article_386508.htm
Index sees longest losing run since June
Created: 2008-12-31
Author:Pan Xiaoyi
SHANGHAI'S key stock index extended losses yesterday for a seventh straight day, marking its longest losing streak since June, after an economist said China's economy will not recover in the short term.
The Shanghai Composite Index shed 0.95 percent, or 17.57, to 1,832.91.
Losers outnumbered gainers 590 to 252 while 32 stocks were unchanged. Turnover was also almost the same at 37.9 billion yuan (US$5.6 billion), against 37.1 billion yuan the previous trading day.
The China Securities Journal reported Fan Jianping, chief economist at the State Information Center under the National Development and Reform Commission, as saying China's producer prices may decline in the first half of 2009 and that there's not enough evidence to show the economy will recover in the short term.
"There is less room for the stimulus package amid the already looser monetary policy in the recent two months. And it seems hard to lift the economy through boosting domestic consumption in the midst of weak market sentiment," said Huang Bo, an analyst from Everbright Securities Co. "There will not be strong rebound near the end of the year."
Steel producers led the declines with Tangshan Iron & Steel Co and Chengde Xinxin Vanadium & Titanium Co plunging by the 10-percent daily cap to 4.1 yuan (6 US cents) and 4.95 yuan respectively. Handan Iron & Steel Co slumped 8.78 percent to 3.43 yuan.
Tangshan Iron & Steel Co, Handan Iron & Steel Co and Chengde Xinxin Vanadium & Titanium Co will merge into one public firm via a share swap, Tangshan Steel said. After the merger, Tangshan Steel will stay as the only publicly listed unit.
The Shanghai Composite Index shed 0.95 percent, or 17.57, to 1,832.91.
Losers outnumbered gainers 590 to 252 while 32 stocks were unchanged. Turnover was also almost the same at 37.9 billion yuan (US$5.6 billion), against 37.1 billion yuan the previous trading day.
The China Securities Journal reported Fan Jianping, chief economist at the State Information Center under the National Development and Reform Commission, as saying China's producer prices may decline in the first half of 2009 and that there's not enough evidence to show the economy will recover in the short term.
"There is less room for the stimulus package amid the already looser monetary policy in the recent two months. And it seems hard to lift the economy through boosting domestic consumption in the midst of weak market sentiment," said Huang Bo, an analyst from Everbright Securities Co. "There will not be strong rebound near the end of the year."
Steel producers led the declines with Tangshan Iron & Steel Co and Chengde Xinxin Vanadium & Titanium Co plunging by the 10-percent daily cap to 4.1 yuan (6 US cents) and 4.95 yuan respectively. Handan Iron & Steel Co slumped 8.78 percent to 3.43 yuan.
Tangshan Iron & Steel Co, Handan Iron & Steel Co and Chengde Xinxin Vanadium & Titanium Co will merge into one public firm via a share swap, Tangshan Steel said. After the merger, Tangshan Steel will stay as the only publicly listed unit.
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