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Dismal data send index to lowest in 43 months
By Ye Zhen |
September 21, 2012, Friday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday fell to their lowest level in 43 months on dismal data that showed China?s production activity shrank in September and also on concern an escalating dispute with Japan may hurt trade.
The Shanghai Composite Index fell 2.08 percent to 2,024.84 points, the lowest close since February 2009.
The preliminary reading of HSBC's China Purchasing Managers" Index touched 47.8 in September, up slightly from August?s 47.6 but still below 50 for 11 months in a row, HSBC Holdings Plc said yesterday. A reading below 50 signals contraction.
The HSBC Flash PMI is slanted toward private and export-oriented companies.
"Investors are further frustrated as the index and other weak data released earlier indicate China's economy remains weak with no signs of bottoming out," Shenyin and Wanguo Securities said yesterday.
Rising tensions between China and Japan over the Diaoyu Islands also weighed on sentiment.
"Investors worry that a deteriorating relationship with Japan will hurt China's economy,ó Gaohua Securities said in a report. "Cessation of trade between the two countries will have a huge impact on the Chinese economy as Japan is China's third largest trade partner, with shipments to Japan at 8 percent of China's total exports."
Oil-related stocks fell in Shanghai after crude oil futures for October delivery shed 3.5 percent in New York on rising inventory.
PetroChina Co, the country's biggest oil producer, lost 1.7 percent to 8.63 yuan (US$1.37). China Petroleum and Chemical Corp, the second-largest, shed 1.5 percent to 5.85 yuan. Shanghai Lonyer Fuels Co fell 7.7 percent to 10.85 yuan.
The Shanghai Composite Index fell 2.08 percent to 2,024.84 points, the lowest close since February 2009.
The preliminary reading of HSBC's China Purchasing Managers" Index touched 47.8 in September, up slightly from August?s 47.6 but still below 50 for 11 months in a row, HSBC Holdings Plc said yesterday. A reading below 50 signals contraction.
The HSBC Flash PMI is slanted toward private and export-oriented companies.
"Investors are further frustrated as the index and other weak data released earlier indicate China's economy remains weak with no signs of bottoming out," Shenyin and Wanguo Securities said yesterday.
Rising tensions between China and Japan over the Diaoyu Islands also weighed on sentiment.
"Investors worry that a deteriorating relationship with Japan will hurt China's economy,ó Gaohua Securities said in a report. "Cessation of trade between the two countries will have a huge impact on the Chinese economy as Japan is China's third largest trade partner, with shipments to Japan at 8 percent of China's total exports."
Oil-related stocks fell in Shanghai after crude oil futures for October delivery shed 3.5 percent in New York on rising inventory.
PetroChina Co, the country's biggest oil producer, lost 1.7 percent to 8.63 yuan (US$1.37). China Petroleum and Chemical Corp, the second-largest, shed 1.5 percent to 5.85 yuan. Shanghai Lonyer Fuels Co fell 7.7 percent to 10.85 yuan.
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