Shanghai market falls at midday as blue chips remain weak

By Lydia Chen  |   2008-8-7  |     ONLINE EDITION

SHANGHAI'S key stock index dropped in the morning session today as lenders, airlines and metal producers were shunned by investors.

The Shanghai Composite Index lost 0.48 percent, or 12.93 points, to 2,706.44 at 11:30am.

Losers in the Shanghai market outnumbered gainers 483 to 312 while 26 did not change.

The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, was down 0.64 percent, or 5.05 points, to 785.60.

Lenders were among the losers this morning. Industrial & Commercial Bank of China, the nation's biggest lender and second-largest market heavyweight, was down 0.58 percent to 5.10 yuan (74 US cents). Minsheng Bank, the only listed privately-owned lender, decreased 1.13 percent to 6.12 yuan while Huaxia Bank partly owned by Deutsche Bank AG, shed 3.93 percent to 11.23 yuan.

Huaxia's net income rose to 1.93 billion yuan from 1.01 billion yuan a year earlier as interest income increased, the Beijing-based bank said in a statement yesterday.

Air China, the nation's largest carrier by market value, buckled 4.33 percent to 9.49 yuan. China Southern Airlines, the biggest by fleet size, declined 5.53 percent to 7.34 yuan while China Eastern Airlines, the third-largest by fleet size, lost 4.29 percent to 7.58 yuan.

Gold producers continued yesterday's slump. Zijin Mining Group Co, China's largest gold producer, lost 3.07 percent to 6.32 yuan. Zhongjin Gold Corp, the second-largest, retreated 2.68 percent to 41.09 yuan.

Shanghai's key stock index has dropped 49 percent this year, making it one of the world's worst-performing major markets.


On the positive side, China State Shipbuilding Co surged 3.10 percent to 75.90 yuan.

China State Shipbuilding Corp, the country's biggest maker of vessels, undertook not to sell part of its controlling stake in listed unit China State Shipbuilding Co for two years longer than planned, following a slump in the market.