Growth forecast cut hits stocks
By Lilith Hu |
June 28, 2012, Thursday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday fell for the sixth straight day as global financial institutions cut their forecasts of China's economic growth while a liquidity crunch near the end of the quarter clouded the market.
The Shanghai Composite Index shed 0.23 percent to 2,216.93 points. The six-day losing streak was the longest in six months.
HSBC Bank became the latest bank to cut its estimate of China's economic growth this year in a latest report, joining JPMorgan Chase, Citigroup, and Barclays.
The report noted China will further relax policies to prevent an economic hard landing. China's central bank will trim interest rates in the third quarter and cut reserve requirement ratio before the end of this year.
"There's plenty of room for policy adjustment to stabilize growth," Qu Hongbin, chief economist for China at HSBC, said yesterday in Shanghai. "The economy will continue to slow if sufficient fine-tuning policy is absent."
Nonferrous metal producers and coal miners sank on weakening economic prospects.
Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Co plunged 3.4 percent to 40.15 yuan (US$6.31), and Aluminum Corp of China slumped 1.9 percent to 6.27 yuan. China Shenhua Energy Co, the nation's biggest coal producer, shed 0.8 percent to 22.27 yuan, and Yanzhou Coal Mining Co lost 1.2 percent to 19.38 yuan.
The Shanghai Composite Index shed 0.23 percent to 2,216.93 points. The six-day losing streak was the longest in six months.
HSBC Bank became the latest bank to cut its estimate of China's economic growth this year in a latest report, joining JPMorgan Chase, Citigroup, and Barclays.
The report noted China will further relax policies to prevent an economic hard landing. China's central bank will trim interest rates in the third quarter and cut reserve requirement ratio before the end of this year.
"There's plenty of room for policy adjustment to stabilize growth," Qu Hongbin, chief economist for China at HSBC, said yesterday in Shanghai. "The economy will continue to slow if sufficient fine-tuning policy is absent."
Nonferrous metal producers and coal miners sank on weakening economic prospects.
Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Co plunged 3.4 percent to 40.15 yuan (US$6.31), and Aluminum Corp of China slumped 1.9 percent to 6.27 yuan. China Shenhua Energy Co, the nation's biggest coal producer, shed 0.8 percent to 22.27 yuan, and Yanzhou Coal Mining Co lost 1.2 percent to 19.38 yuan.
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