Shanghai shares sink more than 2%

By Ding Yining  |   2008-12-11  |     ONLINE EDITION

SHANGHAI'S key stock index fell more than 2 percent over fears of an economic slowdown resurfaced after economic indicators for last month were announced.

The benchmark Shanghai Composite Index lowered 2.28 percent, or 47.44 points, to close at 2,031.68 points. Turnover was 89.8 billion yuan (US$13.1 billion), less than yesterday's 93.0 billion yuan. Losing shares outnumbered gainers 720 to 141 and 46 remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, fell 2.49 percent to close at 608.80 points. Turnover was 40.0 billion yuan.

November's Consumer Price Index added 2.4 percent compared to the same period last year, the lowest figure in 21 months. China's exports in November fell 2.2 from the year-earlier period while imports stumbled 17.9 percent, wider than previous predictions.

"If exports continue to fall, China will face a more severe economic slowdown than we had previously estimated," said Wang Jianhui, an analyst with Southwest Securities, in a research note.

Banks suffered major losses. Industrial & Commercial Bank of China, the nation's biggest lender, fell 2.70 percent to 3.97 yuan. China Construction Bank lost 3.10 percent to 4.37 yuan. Shanghai Pudong Development Bank decreased 3.69 percent to close at 14.86 yuan.

China Eastern Airlines Corp and China Southern Airlines Co Ltd both surged after they announced yesterday in separate statements that they will receive capital from the central government. China Eastern Airlines Corp rallied 9.92 percent to 4.32 yuan. China Southern Airlines Co Ltd surged 9.91 percent to 3.36 yuan.