Earnings fear and M2 data hit index
By Ye Zhen |
October 16, 2012, Tuesday
|
Print Edition
Print Edition
SHANGHAI stocks declined yesterday on concerns over company earnings after China's PPI fell in September for seven months in a row and also on fears monetary policies would not be eased further as growth in money supply accelerated last month.
The Shanghai Composite Index shed 0.3 percent to 2,098.7 points.
China's Producer Price Index, a major gauge of wholesale inflation, fell 3.6 percent annually in September, the National Bureau of Statistics said yesterday. It was the seventh straight month the PPI has fallen and fueled anxiety about poor earnings of Chinese firms.
"A falling PPI shows Chinese enterprises are under pressure, and they may see decline in their earnings last a while," said Ba Shusong, deputy director-general at the Development Research Center of the State Council.
Meanwhile, China's Consumer Price Index rose 1.9 percent last month, compared with a 2 percent rise a month earlier.
Expectations for further monetary easing dampened after China's M2, the broadest measure of money supply, rose 14.8 percent from a year earlier in September, quicker than the 13.5 percent gain in August, the People's Bank of China said on Saturday.
Publishing-related stocks fell after investors locked in gains following a surge in share prices.
Shanghai Xinhua Media Co shed 5 percent to 5.92 yuan (94 US cents). Changjiang Publishing and Media Co slumped 6.1 percent to 6.98 yuan, and Chinese Universe Publishing and Media Co fell 3.5 percent to 15.53 yuan.
The Shanghai Composite Index shed 0.3 percent to 2,098.7 points.
China's Producer Price Index, a major gauge of wholesale inflation, fell 3.6 percent annually in September, the National Bureau of Statistics said yesterday. It was the seventh straight month the PPI has fallen and fueled anxiety about poor earnings of Chinese firms.
"A falling PPI shows Chinese enterprises are under pressure, and they may see decline in their earnings last a while," said Ba Shusong, deputy director-general at the Development Research Center of the State Council.
Meanwhile, China's Consumer Price Index rose 1.9 percent last month, compared with a 2 percent rise a month earlier.
Expectations for further monetary easing dampened after China's M2, the broadest measure of money supply, rose 14.8 percent from a year earlier in September, quicker than the 13.5 percent gain in August, the People's Bank of China said on Saturday.
Publishing-related stocks fell after investors locked in gains following a surge in share prices.
Shanghai Xinhua Media Co shed 5 percent to 5.92 yuan (94 US cents). Changjiang Publishing and Media Co slumped 6.1 percent to 6.98 yuan, and Chinese Universe Publishing and Media Co fell 3.5 percent to 15.53 yuan.
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