Index dips as lending, trade data disappoint
By Ye Zhen |
August 11, 2012, Saturday
|
Print Edition
Print Edition
SHANGHAI stocks dropped yesterday, snapping a five-day winning streak, as disappointing trade and loan data dampened hopes the economy will bottom out and rebound in the second half of this year.
The Shanghai Composite Index shed 0.24 percent to close at 2,168.81 points. Despite the loss, the index rose 1.69 percent for the week, a second week of gains.
China posted a trade surplus of US$25.1 billion in July, down from US$31.7 billion a month earlier, the General Administration of Customs said yesterday. Both exports and imports expanded at a lower-than-expected pace.
New yuan-denominated loans issued by Chinese banks totaled 540.1 billion yuan (US$85 billion) in July, the lowest in 10 months, according to the People's Bank of China.
Credit data for July was poor even though monetary policies were loosened, said Liu Dongliang at China Merchants Bank, adding that it dealt a blow to those who believed the economy would bottom out soon.
Qu Hongbin, chief economist for China at HSBC Holdings Plc, said the government should further ease monetary policy to stabilize economic growth in the second half. He expects the central bank to cut the reserve requirement ratio as early as this weekend.
Kweichow Moutai Co, the nation's biggest distillery, tumbled 4.9 percent to 248.21 yuan after it posted a 42.6 percent rise in first-half profit, down from a 73.5 percent annual gain in 2011. Sichuan Swellfun Co fell 2 percent to 28.11 yuan.
The Shanghai Composite Index shed 0.24 percent to close at 2,168.81 points. Despite the loss, the index rose 1.69 percent for the week, a second week of gains.
China posted a trade surplus of US$25.1 billion in July, down from US$31.7 billion a month earlier, the General Administration of Customs said yesterday. Both exports and imports expanded at a lower-than-expected pace.
New yuan-denominated loans issued by Chinese banks totaled 540.1 billion yuan (US$85 billion) in July, the lowest in 10 months, according to the People's Bank of China.
Credit data for July was poor even though monetary policies were loosened, said Liu Dongliang at China Merchants Bank, adding that it dealt a blow to those who believed the economy would bottom out soon.
Qu Hongbin, chief economist for China at HSBC Holdings Plc, said the government should further ease monetary policy to stabilize economic growth in the second half. He expects the central bank to cut the reserve requirement ratio as early as this weekend.
Kweichow Moutai Co, the nation's biggest distillery, tumbled 4.9 percent to 248.21 yuan after it posted a 42.6 percent rise in first-half profit, down from a 73.5 percent annual gain in 2011. Sichuan Swellfun Co fell 2 percent to 28.11 yuan.
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