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Shanghai index sinks 2.4% to lowest level in 6 months
By Ye Zhen |
July 9, 2012, Monday
|
Online Edition
Online Edition
SHANGHAI stocks dived today as lower-than-expected inflation data fueled concern the nation's economic slowdown is deepening.
The Shanghai Composite Index plunged 2.4 percent, or 52.77 points to 2,170.81 points, the lowest level in six months. Turnover was 69.3 billion yuan (US$11 billion).
The Consumer Price Index rose 2.2 percent in June from a year earlier, easing from 3 percent in May, the National Bureau of Statistics said today. The Production Price Index fell 2.1 percent from a year earlier, its fourth consecutive monthly drop.
"The decline of commodity prices in the global market and the continued weakness in domestic demand contributed to the falling PPI, which has been below zero for four months, indicating the risk of deflation is mounting," Qu Hongbin, chief economist for China at HSBC Holdings Plc, wrote on his microblog today.
The central bank has cut benchmark interest rates twice in a month in a move to shore up the nation's economy that is in its deepest slowdown since the 2008 global financial crisis.
Analysts expect GDP growth in the world's second largest economy to slow to 7.3 percent in the second quarter this year, the lowest since the first quarter of 2009.
Cement producers led the market down as data showed the average price of cement across the country fell 1.14 percent from a week earlier, according to a report released by Guosen Securities today.
Anhui Conch Cement Co, the country's biggest cement maker, lost 3.9 percent to 14 yuan. Zhejiang Jianfeng Group Co dropped 5.5 percent to 10.79 yuan. Gansu Qilianshan Cement Group Co slumped 5.3 percent to 9.29 yuan.
Coal producers declined as the business outlook for the sector remains weak on rising inventories and falling prices. Shanxi Lanhua Sci-Tech Venture Co fell 6 percent to 17.43 yuan. Shanxi Lu'an Environmental Energy Development Co tumbled 6 percent to 19.95 yuan. China Shenhua Energy Co shed 3.3 percent to 21.86 yuan.
The Shanghai Composite Index plunged 2.4 percent, or 52.77 points to 2,170.81 points, the lowest level in six months. Turnover was 69.3 billion yuan (US$11 billion).
The Consumer Price Index rose 2.2 percent in June from a year earlier, easing from 3 percent in May, the National Bureau of Statistics said today. The Production Price Index fell 2.1 percent from a year earlier, its fourth consecutive monthly drop.
"The decline of commodity prices in the global market and the continued weakness in domestic demand contributed to the falling PPI, which has been below zero for four months, indicating the risk of deflation is mounting," Qu Hongbin, chief economist for China at HSBC Holdings Plc, wrote on his microblog today.
The central bank has cut benchmark interest rates twice in a month in a move to shore up the nation's economy that is in its deepest slowdown since the 2008 global financial crisis.
Analysts expect GDP growth in the world's second largest economy to slow to 7.3 percent in the second quarter this year, the lowest since the first quarter of 2009.
Cement producers led the market down as data showed the average price of cement across the country fell 1.14 percent from a week earlier, according to a report released by Guosen Securities today.
Anhui Conch Cement Co, the country's biggest cement maker, lost 3.9 percent to 14 yuan. Zhejiang Jianfeng Group Co dropped 5.5 percent to 10.79 yuan. Gansu Qilianshan Cement Group Co slumped 5.3 percent to 9.29 yuan.
Coal producers declined as the business outlook for the sector remains weak on rising inventories and falling prices. Shanxi Lanhua Sci-Tech Venture Co fell 6 percent to 17.43 yuan. Shanxi Lu'an Environmental Energy Development Co tumbled 6 percent to 19.95 yuan. China Shenhua Energy Co shed 3.3 percent to 21.86 yuan.
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