Index ends at lowest level since March 2009 on jittery investors
By Hu Xiaocen and Lu Nengneng |
January 6, 2012, Friday
|
Print Edition
Print Edition
THE Shanghai Composite Index yesterday closed at its lowest level since March 2009 as investors were spooked by a news report about the central government's possible support for short selling.
The index edged down 0.97 percent to end at 2,148.45 points, erasing its slight rebound before the noon break.
The UK's Financial Times reported on Wednesday that a new body called the Centralized Securities Lending Exchange will be set up in Beijing to facilitate short selling as early as this quarter.
The news, though not verified by the China Securities Regulatory Commission, caused investors to be jittery over possibly more market volatility. Shanghai's index fell 21.7 percent last year.
Property developers paced the index's decline on concerns over a looming credit default crisis amid continued curbs on the housing market. Poly Real Estate, China's second-biggest listed developer, lost 2.5 percent to 9.80 yuan.
China Cosco Holdings Co, Asia's largest shipping line, fell 4.4 percent to 4.30 yuan after Luxembourg's prime minister said the European Union is facing a recession of unknown scope.
Banks were among the few risers as speculation of another reserve requirement cut before the week-long Spring Festival holiday, which starts on January 22, eased worries over the current liquidity crunch.
Shanghai Pudong Development Bank, the first bank in China to publish its unaudited financial statement for 2011, estimated last year's net profit jumped 42 percent annually to 27.2 billion yuan (US$4.3 billion). Its earnings per share were 1.46 yuan, up 18.7 percent from 2010. It rose 2.9 percent to 8.65 yuan.
Bank of Communications gained 2.5 percent to close at 4.56 yuan.
The index edged down 0.97 percent to end at 2,148.45 points, erasing its slight rebound before the noon break.
The UK's Financial Times reported on Wednesday that a new body called the Centralized Securities Lending Exchange will be set up in Beijing to facilitate short selling as early as this quarter.
The news, though not verified by the China Securities Regulatory Commission, caused investors to be jittery over possibly more market volatility. Shanghai's index fell 21.7 percent last year.
Property developers paced the index's decline on concerns over a looming credit default crisis amid continued curbs on the housing market. Poly Real Estate, China's second-biggest listed developer, lost 2.5 percent to 9.80 yuan.
China Cosco Holdings Co, Asia's largest shipping line, fell 4.4 percent to 4.30 yuan after Luxembourg's prime minister said the European Union is facing a recession of unknown scope.
Banks were among the few risers as speculation of another reserve requirement cut before the week-long Spring Festival holiday, which starts on January 22, eased worries over the current liquidity crunch.
Shanghai Pudong Development Bank, the first bank in China to publish its unaudited financial statement for 2011, estimated last year's net profit jumped 42 percent annually to 27.2 billion yuan (US$4.3 billion). Its earnings per share were 1.46 yuan, up 18.7 percent from 2010. It rose 2.9 percent to 8.65 yuan.
Bank of Communications gained 2.5 percent to close at 4.56 yuan.
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