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Shanghai index falls amid fear of liquidity drain
By Ye Zhen |
November 28, 2012, Wednesday
|
Online Edition
Online Edition
SHANGHAI stocks extended yesterday's losing streak in morning trading as a spate of non-tradable shares is to flood the stock market next month.
The key Shanghai Composite Index lost 0.69 percent, or 13.73 points, to 1,977.43 points with a turnover of 17.7 billion yuan (US$2.9 billion) by midday. The index fell below the 2,000-mark yesterday for the first time since January 23, 2009.
A total of 180.9 billion yuan worth of non-tradable shares of 96 companies will be allowed to circulate in the Shanghai and Shenzhen markets in December, the most since September 2011, data from Southwest Securities showed.
Investors are worried that the unlocked shares will siphon money off the stock market that is already short of liquidity and may drag down share prices.
Gold stocks fell after gold futures for December delivery fell US$7.3 to US$1,742.30 per ounce yesterday in New York. Zijin Mining Group Co, the nation's largest gold producer, dropped 2.4 percent to 3.61 yuan. Shandong Gold Mining Co shed 1.3 percent to 36.92 yuan. Zhongjin Gold Corp decreased 2.8 percent to 15.16 yuan.
Lenders were mixed after the State Council approved a plan to cut card-swipe fees charged on merchants. Bank of China shed 0.4 percent to 2.74 yuan. China Construction Bank lost 0.2 percent to 4.17 yuan. Agricultural Bank of China added 0.4 percent to 2.62 yuan.
Most property developers declined. Poly Real Estate, China's second largest developer, lost 1.8 percent to 11.21 yuan. Gemdale Corporation fell 0.4 percent to 5.14 yuan.
The key Shanghai Composite Index lost 0.69 percent, or 13.73 points, to 1,977.43 points with a turnover of 17.7 billion yuan (US$2.9 billion) by midday. The index fell below the 2,000-mark yesterday for the first time since January 23, 2009.
A total of 180.9 billion yuan worth of non-tradable shares of 96 companies will be allowed to circulate in the Shanghai and Shenzhen markets in December, the most since September 2011, data from Southwest Securities showed.
Investors are worried that the unlocked shares will siphon money off the stock market that is already short of liquidity and may drag down share prices.
Gold stocks fell after gold futures for December delivery fell US$7.3 to US$1,742.30 per ounce yesterday in New York. Zijin Mining Group Co, the nation's largest gold producer, dropped 2.4 percent to 3.61 yuan. Shandong Gold Mining Co shed 1.3 percent to 36.92 yuan. Zhongjin Gold Corp decreased 2.8 percent to 15.16 yuan.
Lenders were mixed after the State Council approved a plan to cut card-swipe fees charged on merchants. Bank of China shed 0.4 percent to 2.74 yuan. China Construction Bank lost 0.2 percent to 4.17 yuan. Agricultural Bank of China added 0.4 percent to 2.62 yuan.
Most property developers declined. Poly Real Estate, China's second largest developer, lost 1.8 percent to 11.21 yuan. Gemdale Corporation fell 0.4 percent to 5.14 yuan.
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