Index slides at midday on slower investment spending

By Pan Xiaoyi  |   2008-12-16  |     ONLINE EDITION

SHANGHAI'S key stock index declined in the morning session today on a gloomy economic outlook after investment spending slowed in the first 11 months.

The Shanghai Composite Index lost 1.78 percent, or 35.02 points, to 1929.36 points at 11:30am.

The Shenzhen Composite Index, which tracks the smaller domestic market, was down 0.96 percent, or 5.7 points, to 584.67 points.

The National Bureau of Statistics said spending on factories and real estate rose 25.8 percent year on year in the first 11 months, slower than 27.2 percent between January and October and 27.6 percent in the first nine months.

PetroChina, the country's largest oil producer and the market's biggest component, retreated 2.7 percent to 10.81 yuan while China Petroleum & Chemical Corp, the country's biggest oil refiner, dipped 1.79 percent to 7.69 yuan.

Bucking the downward trend, real estate developers gained on a possible loosening policy when buying a second-hand home.

China Vanke Co, the country's largest publicly listed property developer, advanced 3.19 percent to 7.43 yuan. Shanghai-based Shimao Property Co added 0.28 percent to 7.24 yuan. Gemdale Corp, a Chinese partner of ING Group NV, increased 4.98 percent to end the session at 8.22 yuan.