Wide spread sell-off drags market down at midday

By Lydia Chen  |   2008-11-18  |     ONLINE EDITION

SHANGHAI’S key stock index fell in the morning session due to a wide spread sell-off among blue chips across the board. But major airlines continued yesterday’s rally over financial aid from the government.

The benchmark Shanghai Composite Index lost 2.35 percent, or 47.62 points, to 1,982.87 points at 11:30am.

Losers outnumbered gainers 708 to 110 and three did not change.

The Shenzhen Composite Index, which tracks the smaller domestic market, was down 3.15 percent, or 17.75 points, to 545.87 points.

China Vanke, the nation’s biggest developer, plunged 5.27 percent to 6.47 yuan (95 US cents). Industrial and Commercial Bank of China, the nation’s largest lender and the second biggest market heavyweight, shed 2.17 percent to 4.05 yuan.

China Construction Bank, the country’s second-largest bank, slipped 1.54 percent to 4.48 yuan. Bank of America Corp said it will almost double its stake in Construction Bank to 19.13 percent from 10.8 percent.

In other sectors, Ping An Insurance Co, the nation’s second largest insurer, lost 4.41 percent to 25.99 yuan while China Life Insurance Co, the largest insurer, buckled 1.11 percent to 21.35 yuan. China Life said yesterday its 10-month premium income reached 264.8 billion yuan, without giving a comparative figure.

Dongfang Electric Corp, China’s second-biggest maker of power equipment said it plans to raise 1.3 billion yuan by selling shares after profit dropped and it suffered from the Sichuan earthquake. The stock retreated 5.51 percent to 23.33 yuan.

On the positive side, China Eastern Airlines continued to lead carriers higher after saying that an application for government aid was in the “final stage.''

The carrier is waiting for written approval for the aid, Board Secretary Luo Zhuping told Bloomberg News by phone today. Parent China Eastern Air Holding Co will receive the funds and then inject them into the listed unit, he added. He didn't say how much money the airline will get.