Shanghai shares drop at noon break

By Lydia Chen  |   2008-6-17  |     ONLINE EDITION

SHARES in Shanghai declined in the morning session today.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, lost 0.87 percent, or 25.05 points, to 2,849.05 at 11:30am.

Losers in the Shanghai market outnumbered gainers 627 to 152 while 25 were unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was down 1.40 percent, or 11.80 points, to 828.25.

Securities stocks led the Shanghai index down this morning as investors showed concern that a sliding market will hurt brokerages earnings.

But aerospace firms enjoyed a good morning after a report said the country's main plane makers will merge.

Citic Securities, the nation's largest brokerage, was down 2.33 percent to 23 yuan (US$3.33) while Haitong Securities slumped 8.01 percent to 20.78 yuan. Hongyuan Securities slid 4.29 percent to 18.28 yuan.

Yunnan Copper Industry Co, China's third-biggest producer of the metal, was among losing commodity shares this morning.

Yunnan Copper sank 4.87 percent to 17.20 yuan. The company said it will sell 2.8 billion yuan of one-year notes on June 20 to fund the purchase of raw materials and repay bank loans.

Aluminum Corp of China Ltd, the nation's biggest maker of the lightweight metal and known as Chalco, declined 1.27 percent to 13.97 yuan.

Its parent Aluminum China may increase its stake in Rio Tinto Group should favorable market conditions exist, President Xiao Yaqing said.

Elsewhere, Daqin Railway Co, the operator of China's biggest coal transport network, also buckled 1.23 percent to 12.90 yuan. The company said yesterday that shareholders approved its plan to sell as much as 15 billion yuan of bonds to buy wagons and locomotives.

Jiangxi Hongdu Aviation Industry Co jumped 3.32 percent to 16.79 yuan. Xi'an Aircraft International Corp gained 4.04 percent to 14.75 yuan.