Europe woes send index down
By Feng Jianmin |
October 20, 2011, Thursday
|
Print Edition
Print Edition
SHANGHAI'S stock market yesterday fell for a second day as concerns over the European debt crisis lingered although there was some relief that liquidity pressure may ease.
The Shanghai Composite Index dipped 0.3 percent and closed at 2,377.51 points.
Investor concerns over the European debt crisis worsened after Moody's downgraded Spain from Aa2 to A1.
Meanwhile, Zhang Gang, an analyst at Central China Securities, said investors were still concerned about the slower growth in China's economy.
However, the seven-day repurchase rate, a measure of the cost of borrowing between banks, fell 0.14 percentage point from a weekly high of 3.49 percent yesterday, indicating an easing of liquidity pressure.
Worries that huge initial public offerings may drain liquidity from market also eased after Sinohydro Group, China's largest dam builder that made the largest initial public offering on the Chinese mainland this year, dropped 7.8 percent to 4.86 yuan (76 US cents) yesterday.
The retreat partly eroded the 17 percent growth in its debut on Tuesday.
Banks were mixed as an HSBC report cautioned that banks in Asia may face serious short-term risks if the economic situation in Europe and the United States continued to weaken. But Asia may come through due to relatively sufficient liquidity in the financial system.
The Agricultural Bank of China lost 1.2 percent to 2.59 yuan while the Industrial and Commercial Bank of China added 0.2 percent to 4.18 yuan.
Railway-related shares. Trainmaker CSR Corp rose 1.8 percent to end at 5.01 yuan. Jinxi Axle Co jumped 6.3 percent to 11.93 yuan.
The Shanghai Composite Index dipped 0.3 percent and closed at 2,377.51 points.
Investor concerns over the European debt crisis worsened after Moody's downgraded Spain from Aa2 to A1.
Meanwhile, Zhang Gang, an analyst at Central China Securities, said investors were still concerned about the slower growth in China's economy.
However, the seven-day repurchase rate, a measure of the cost of borrowing between banks, fell 0.14 percentage point from a weekly high of 3.49 percent yesterday, indicating an easing of liquidity pressure.
Worries that huge initial public offerings may drain liquidity from market also eased after Sinohydro Group, China's largest dam builder that made the largest initial public offering on the Chinese mainland this year, dropped 7.8 percent to 4.86 yuan (76 US cents) yesterday.
The retreat partly eroded the 17 percent growth in its debut on Tuesday.
Banks were mixed as an HSBC report cautioned that banks in Asia may face serious short-term risks if the economic situation in Europe and the United States continued to weaken. But Asia may come through due to relatively sufficient liquidity in the financial system.
The Agricultural Bank of China lost 1.2 percent to 2.59 yuan while the Industrial and Commercial Bank of China added 0.2 percent to 4.18 yuan.
Railway-related shares. Trainmaker CSR Corp rose 1.8 percent to end at 5.01 yuan. Jinxi Axle Co jumped 6.3 percent to 11.93 yuan.
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