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Fourth day of falls as market awaits figures
By Lydia Chen |
September 7, 2011, Wednesday
|
Print Edition
Print Edition
SHANGHAI stock market yesterday fell for a fourth day as concerns about China's growth continued to sour sentiment ahead of the release of a raft of economic data on Friday.
The Shanghai Composite Index slid 0.3 percent to 2,470.52, the lowest since July 16, 2010.
"The market is not likely to stabilize in the short term," said Wang Liemin, an analyst at Guosen Securities. "Only if the authority eases its grip on liquidity would a rebound be in sight."
But this seems unlikely. China International Capital warned on Monday that liquidity would remain tight in stock markets for the rest of the year as China is unlikely to switch policy unless the economy falls sharply.
The investment bank maintained its forecast of 9.2 percent growth this year but expected growth to slow to 8.4 percent next year, 0.3 points below its previous estimate.
The cement sector, a benchmark tracking the country's economic performance, was one of the biggest drags on the market.
Anhui Conch Cement, -China's biggest producer of the material, plunged 5.2 percent to 18.69 yuan (US$2.92), the lowest since January 25. The stock has fallen 28 percent over the past month.
Credit Suisse yesterday cut its target price for the Hong Kong shares of Anhui Conch to HK$28 (US$3.59) from a previous estimate of HK$37 to reflect a weakening outlook and a downside risk to margins next year.
Auto stocks also slumped. SAIC Motor, the country's largest automaker, sank 4.2 percent to 14.75 yuan.
The Shanghai Composite Index slid 0.3 percent to 2,470.52, the lowest since July 16, 2010.
"The market is not likely to stabilize in the short term," said Wang Liemin, an analyst at Guosen Securities. "Only if the authority eases its grip on liquidity would a rebound be in sight."
But this seems unlikely. China International Capital warned on Monday that liquidity would remain tight in stock markets for the rest of the year as China is unlikely to switch policy unless the economy falls sharply.
The investment bank maintained its forecast of 9.2 percent growth this year but expected growth to slow to 8.4 percent next year, 0.3 points below its previous estimate.
The cement sector, a benchmark tracking the country's economic performance, was one of the biggest drags on the market.
Anhui Conch Cement, -China's biggest producer of the material, plunged 5.2 percent to 18.69 yuan (US$2.92), the lowest since January 25. The stock has fallen 28 percent over the past month.
Credit Suisse yesterday cut its target price for the Hong Kong shares of Anhui Conch to HK$28 (US$3.59) from a previous estimate of HK$37 to reflect a weakening outlook and a downside risk to margins next year.
Auto stocks also slumped. SAIC Motor, the country's largest automaker, sank 4.2 percent to 14.75 yuan.
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