Key index falters over slowdown in growth
By Pan Xiaoyi |
July 16, 2010, Friday
|
Print Edition
Print Edition
SHANGHAI'S stocks yesterday declined after the National Bureau of Statistics said the country's economic growth slowed in the second quarter of this year.
The benchmark Shanghai Composite Index lost 1.87 percent to 2,424.3 points. Turnover stood at 72.2 billion yuan (US$10.7 billion), up from 70.2 billion yuan on Wednesday.
Economic growth rose 10.3 percent in the second quarter, down from an 11.9 percent gain in the first three months. Inflation cooled to 2.9 percent in June from 3.1 percent in May, the National Bureau of Statistics said.
"Some investors were worried that slower growth could herald weaker corporate earnings in the coming months," said Zhu Yanwei, a China Galaxy Securities Co trader. "But a technical rebound is likely in the near term since the index has dropped nearly 30 percent this year."
Power producers led the declines as electricity generation growth slowed in June. Shanghai Electric Power Co retreated 2.21 percent to 3.99 yuan. Huadian Power International Corp was off 2.62 percent to 3.71 yuan.
Zijin Mining Group Co dropped 4.71 percent to 5.52 yuan after saying the securities regulator was investigating the company over its disclosure of waste-water leakage in Fujian Province.
The Agricultural Bank of China, which launched the world's biggest initial public offering this year, added 0.75 percent to close at 2.70 yuan on its first trading day.
Property developers outperformed the benchmark index on speculation that the government may not rush to increase interest rates.
The benchmark Shanghai Composite Index lost 1.87 percent to 2,424.3 points. Turnover stood at 72.2 billion yuan (US$10.7 billion), up from 70.2 billion yuan on Wednesday.
Economic growth rose 10.3 percent in the second quarter, down from an 11.9 percent gain in the first three months. Inflation cooled to 2.9 percent in June from 3.1 percent in May, the National Bureau of Statistics said.
"Some investors were worried that slower growth could herald weaker corporate earnings in the coming months," said Zhu Yanwei, a China Galaxy Securities Co trader. "But a technical rebound is likely in the near term since the index has dropped nearly 30 percent this year."
Power producers led the declines as electricity generation growth slowed in June. Shanghai Electric Power Co retreated 2.21 percent to 3.99 yuan. Huadian Power International Corp was off 2.62 percent to 3.71 yuan.
Zijin Mining Group Co dropped 4.71 percent to 5.52 yuan after saying the securities regulator was investigating the company over its disclosure of waste-water leakage in Fujian Province.
The Agricultural Bank of China, which launched the world's biggest initial public offering this year, added 0.75 percent to close at 2.70 yuan on its first trading day.
Property developers outperformed the benchmark index on speculation that the government may not rush to increase interest rates.
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