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Blue chips reserve in Shanghai, leading index down
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SHANGHAI stocks dropped slightly in morning trading, losing 0.21 percent to 2,219.99 points. Blue chips reversed from yesterday’s rebound, with the coal sector leading the decliners.
The on-grid power price is likely to fall in the near future, which could limit the coal price. Qitaihe Baotailong Coal & Coal Chemicals lost 2.81 percent to 11.40 yuan, while Zhengzhou Coal Industry & Electric Power was down 1.95 percent at 5.02 yuan.
As the central government has turned down the purchase of certain security software produced by overseas companies, domestic brands are set to benefit. Beijing Teamsun Technology surged 10 percent to 13.30 yuan, while UFIDA Software Co gained 7.23 percent to 16.62 yuan.
It is announced yesterday President Xi Jinping will attend the opening ceremony of the Second Summer Youth Olympic Games held in Nanjing on August 16. Shares in the sports sector gained. China Sports Industry Group increased 4.84 percent to 12.14 yuan.
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