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Rail shares lead the steepest drop in six months in Shanghai
By Lydia Chen |
July 25, 2011, Monday
|
Online Edition
Online Edition
SHANGHAI stock index plunged the most in more than six months today, with railway-related shares driving the benchmark index down following a deadly bullet train crash while stalled United States talks over its debt limit also cast a shadow.
The Shanghai Composite Index tumbled 2.98 percent to 2,688.28, the biggest daily fall since January 17 when the index shed 3.03 percent. Turnover, however, added to 120.54 billion yuan (US$18.68 billion).
Railway shares were the worst hit players today as investors started panic selling after the fatal crash in Wenzhou City, Zhejiang Province over the weekend so far killed at least 38 people.
CSR Corp, dived 8.90 percent to 6.04 yuan while China CNR Corp, plunged 9.69 percent to 5.87 yuan.
The bullet train, made by CSR Corp, broke down after it was struck by lightning was rear-ended by another locomotive two days ago near Wenzhou city, Xinhua news agency said. The crash, which pushed four coaches off a viaduct, injured more than 200 people, according to Xinhua.
The tragedy, however, drove up airliners as a report by Barclays Plc said the train crash will spur demand for alternative transport.
China Eastern Airlines gained 1.19 percent to 5.09 yuan.
Meanwhile, US politicians' failure to reach an agreement on raising the country's federal debt limit over the weekend could cast pressure on the stock market of China at least in a short term, whose record US$3.2 trillion reserve has as much as 70 percent now in US dollar assets, according to Huang Dongsheng, an analyst with Guodu Securities Co.
Xia Bin, a member of the monetary policy committee of China's central bank, said today that China should not worry about the stalled US debt talks since Washington has little choice but to continue pursuing loose monetary policy in a bid to spur the world's biggest economy.
The Shanghai Composite Index tumbled 2.98 percent to 2,688.28, the biggest daily fall since January 17 when the index shed 3.03 percent. Turnover, however, added to 120.54 billion yuan (US$18.68 billion).
Railway shares were the worst hit players today as investors started panic selling after the fatal crash in Wenzhou City, Zhejiang Province over the weekend so far killed at least 38 people.
CSR Corp, dived 8.90 percent to 6.04 yuan while China CNR Corp, plunged 9.69 percent to 5.87 yuan.
The bullet train, made by CSR Corp, broke down after it was struck by lightning was rear-ended by another locomotive two days ago near Wenzhou city, Xinhua news agency said. The crash, which pushed four coaches off a viaduct, injured more than 200 people, according to Xinhua.
The tragedy, however, drove up airliners as a report by Barclays Plc said the train crash will spur demand for alternative transport.
China Eastern Airlines gained 1.19 percent to 5.09 yuan.
Meanwhile, US politicians' failure to reach an agreement on raising the country's federal debt limit over the weekend could cast pressure on the stock market of China at least in a short term, whose record US$3.2 trillion reserve has as much as 70 percent now in US dollar assets, according to Huang Dongsheng, an analyst with Guodu Securities Co.
Xia Bin, a member of the monetary policy committee of China's central bank, said today that China should not worry about the stalled US debt talks since Washington has little choice but to continue pursuing loose monetary policy in a bid to spur the world's biggest economy.
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