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Shanghai market plummets to 9-month low
By Lydia Chen |
June 16, 2011, Thursday
|
Online Edition
Online Edition
SHANGHAI stock market sank to the lowest in almost nine months, weighed down by a cross-board sell-off amid investors' concerns over the country's economic growth and monetary tightening.
The Shanghai Composite Index shed 1.52 percent to 2,664.28, the lowest since September 30, 2010 when it closed at 2,655.66.
Airplane makers were the biggest drag with a fall of 3.79 percent for the sector.
Jiangxi Hongdu Aviation Industry Corp tumbled 4.46 percent to 28.92 yuan (US$4.47). PetroChina, the biggest oil maker, was down 1.83 percent to 10.72 yuan.
Many analysts are suggesting investors better to stand aside because the market may see further tumbles given China's inflation still hovering high.
Market players were concerned about a potential interest rate rise soon this month, following a bank reserve rate hike yesterday because the yield on PBOC's three-month bills unexpectedly rose by about 8 basis points at auction today.
Hou Zhenhai, deputy general manager of China International Capital Corp, said the leading Chinese investment bank expected a further 10 percent fall in the stock market, which means the benchmark index could drop to 2,600 points.
But Huang Haizhou, chief strategist of CICC, added that a rebound could be likely from early July to late August, which may push the index to up to 3,200 points.
The Shanghai Composite Index shed 1.52 percent to 2,664.28, the lowest since September 30, 2010 when it closed at 2,655.66.
Airplane makers were the biggest drag with a fall of 3.79 percent for the sector.
Jiangxi Hongdu Aviation Industry Corp tumbled 4.46 percent to 28.92 yuan (US$4.47). PetroChina, the biggest oil maker, was down 1.83 percent to 10.72 yuan.
Many analysts are suggesting investors better to stand aside because the market may see further tumbles given China's inflation still hovering high.
Market players were concerned about a potential interest rate rise soon this month, following a bank reserve rate hike yesterday because the yield on PBOC's three-month bills unexpectedly rose by about 8 basis points at auction today.
Hou Zhenhai, deputy general manager of China International Capital Corp, said the leading Chinese investment bank expected a further 10 percent fall in the stock market, which means the benchmark index could drop to 2,600 points.
But Huang Haizhou, chief strategist of CICC, added that a rebound could be likely from early July to late August, which may push the index to up to 3,200 points.
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