Shanghai index plunges 1.1% on weak sentiment
By Ye Zhen |
August 16, 2012, Thursday
|
Print Edition
Print Edition
SHANGHAI'S stock market yesterday dropped to the lowest in two weeks as investor sentiment remained weak amid concern over the nation's economic growth and a lack of stimulus measures.
The key Shanghai Composite Index lost 1.1 percent to end at 2,118.95 points.
Investors are disappointed with the delay in stimulus measures, said Wei Xutao, analyst at Caitong Securities, adding that gross domestic product growth may decelerate further in the third quarter without policy support.
Electricity consumption in China rose 4.5 percent from a year earlier to 455.6 billion kilowatt-hours in July, down from an annual growth of 11.8 percent in the same period of last year, data from the National Energy Administration showed.
Changes in electricity usage have been taken as a proxy for economic growth in China. A decrease in power consumption indicates the nation's economic slowdown is deepening.
Lenders posted a weak run as bad loans at domestic banks increased for a third consecutive quarter. Shanghai Pudong Development Bank slumped 2.8 percent to 7.58 yuan (US$1.19). China Merchants Bank dropped 2.3 percent to 9.94 yuan. The Bank of Communications slid 1.3 percent to 4.42 yuan.
China Merchants Securities Co lost among brokerages, falling 1.7 percent to 9.91 yuan, after it reported a 35.7 percent slump in first-half net profit. Citic Securities, China's biggest listed brokerage, fell 1 percent to 10.70 yuan.
A sluggish stock market may linger longer than expected as the economy is not likely to rebound in the third quarter, Great Wall Securities said.
The key Shanghai Composite Index lost 1.1 percent to end at 2,118.95 points.
Investors are disappointed with the delay in stimulus measures, said Wei Xutao, analyst at Caitong Securities, adding that gross domestic product growth may decelerate further in the third quarter without policy support.
Electricity consumption in China rose 4.5 percent from a year earlier to 455.6 billion kilowatt-hours in July, down from an annual growth of 11.8 percent in the same period of last year, data from the National Energy Administration showed.
Changes in electricity usage have been taken as a proxy for economic growth in China. A decrease in power consumption indicates the nation's economic slowdown is deepening.
Lenders posted a weak run as bad loans at domestic banks increased for a third consecutive quarter. Shanghai Pudong Development Bank slumped 2.8 percent to 7.58 yuan (US$1.19). China Merchants Bank dropped 2.3 percent to 9.94 yuan. The Bank of Communications slid 1.3 percent to 4.42 yuan.
China Merchants Securities Co lost among brokerages, falling 1.7 percent to 9.91 yuan, after it reported a 35.7 percent slump in first-half net profit. Citic Securities, China's biggest listed brokerage, fell 1 percent to 10.70 yuan.
A sluggish stock market may linger longer than expected as the economy is not likely to rebound in the third quarter, Great Wall Securities said.
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