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Shanghai Composite sinks its lowest since Feb 2009
By Ye Zhen |
November 27, 2012, Tuesday
|
Online Edition
Online Edition
SHANGHAI stocks fell the most in two weeks, sending the key index to below the 2,000 mark, jittery over a potential liquidity crunch offset an accelerated growth in industrial profit.
The benchmark Shanghai Composite Index lost 1.3 percent, or 26.30 points, to 1,991.16 points, the lowest close since February 2009. Turnover was 39 billion yuan (US$6.3 billion) today.
The combined profit of China's major industrial companies rose 0.5 percent in the first ten months of this year, compared with a 1.8 percent drop in the January-September period, the National Bureau of Statistics said today.
Industrial profit posted an annual gain of 20.5 percent to 500 billion yuan in October, up sharply from September's increase of 7.8 percent.
Although the new data indicated China's economy is recovering, it can hardly boost the stock market, analyst said.
"A moderate rebound in economic fundamentals is unlikely to lift the stock index in the short term, especially during a policy vacuum. Concerns over a year-end liquidity crunch remain the prime barrier for the market," said Changjiang Securities.
Market confidence was further eroded after data from Desheng fund research center showed that Chinese funds reduced their equity weighting for three consecutive weeks to a 12-month low of 73.69 percent.
"Fund companies' cut in equinity holdings fueled a wave of panic selling," said Guangzhou Wanlong Securities Consulting Co.
Media and entertainment companies were among the biggest losers. JiShi Media Co slumped 6.7 percent to 6.93 yuan. BesTV New Media Co lost 5.8 percent to 13.88 yuan. Jiangsu Phoenix Publishing & Media Co shed 3.4 percent to 6.32 yuan.
Lenders gained against the falling index after the central bank injected 135 billion today into the country's banking system via reverse repurchase agreements. China Minsheng Banking Corp added 1.3 percent to 6.22 yuan. China Construction Bank Corp rose 0.5 percent to 4.18 yuan.
The benchmark Shanghai Composite Index lost 1.3 percent, or 26.30 points, to 1,991.16 points, the lowest close since February 2009. Turnover was 39 billion yuan (US$6.3 billion) today.
The combined profit of China's major industrial companies rose 0.5 percent in the first ten months of this year, compared with a 1.8 percent drop in the January-September period, the National Bureau of Statistics said today.
Industrial profit posted an annual gain of 20.5 percent to 500 billion yuan in October, up sharply from September's increase of 7.8 percent.
Although the new data indicated China's economy is recovering, it can hardly boost the stock market, analyst said.
"A moderate rebound in economic fundamentals is unlikely to lift the stock index in the short term, especially during a policy vacuum. Concerns over a year-end liquidity crunch remain the prime barrier for the market," said Changjiang Securities.
Market confidence was further eroded after data from Desheng fund research center showed that Chinese funds reduced their equity weighting for three consecutive weeks to a 12-month low of 73.69 percent.
"Fund companies' cut in equinity holdings fueled a wave of panic selling," said Guangzhou Wanlong Securities Consulting Co.
Media and entertainment companies were among the biggest losers. JiShi Media Co slumped 6.7 percent to 6.93 yuan. BesTV New Media Co lost 5.8 percent to 13.88 yuan. Jiangsu Phoenix Publishing & Media Co shed 3.4 percent to 6.32 yuan.
Lenders gained against the falling index after the central bank injected 135 billion today into the country's banking system via reverse repurchase agreements. China Minsheng Banking Corp added 1.3 percent to 6.22 yuan. China Construction Bank Corp rose 0.5 percent to 4.18 yuan.
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