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Shanghai shares fall on bleak profit outlook
By Ye Zhen |
September 4, 2012, Tuesday
|
Online Edition
Online Edition
SHANGHAI stocks retreated today amid fears that a decelerating Chinese economy will hurt the profitability of listed companies.
The Shanghai Composite Index dropped 0.75 percent, or 15.50 points, to 2,043.65 points. Turnover was 47.6 billion yuan (US$7.6 billion) at the trading close.
Nearly 50 percent of the 945 companies listed in Shanghai and Shenzhen bourses predicted their profits will shrink in the third quarter, the 21st Century Business Herald reported today.
The latest data showed that China's manufacturing activity contracted at a faster pace in August, damping hopes that the domestic economy will regain growth momentum in the second half of this year.
A worse-than-expected PMI data for August indicates that China's economy has not bottomed out yet and is still under strong downward pressure, Founder Securities said in a report.
Lenders led the market down as worries mount that an increase of bad loans may threaten the prospect of the banking sector. The Industrial and Commercial Bank of China Ltd, the nation's largest lender, declined 0.8 percent to 3.74 yuan. Bank of Communications fell 1.6 percent to 4.21 yuan. China Merchants Bank lost 1.7 percent to 9.84 yuan.
Insurers also fell. China Life Insurance, the country's biggest insurer, shed 1.2 percent to 17.83 yuan. Ping An Insurance Co, China's second largest insurer, slid 1.1 percent to 39.43 yuan. China Pacific Insurance (Group) Co declined 1.5 percent to 19.62 yuan.
Property developers lost amid uncertainty over policy direction. Poly Real Estate, the nation's second largest developer, sank 1.8 percent to 9.95 yuan. Gemdale Corporation slumped 2 percent to 5.13 yuan.
The Shanghai Composite Index dropped 0.75 percent, or 15.50 points, to 2,043.65 points. Turnover was 47.6 billion yuan (US$7.6 billion) at the trading close.
Nearly 50 percent of the 945 companies listed in Shanghai and Shenzhen bourses predicted their profits will shrink in the third quarter, the 21st Century Business Herald reported today.
The latest data showed that China's manufacturing activity contracted at a faster pace in August, damping hopes that the domestic economy will regain growth momentum in the second half of this year.
A worse-than-expected PMI data for August indicates that China's economy has not bottomed out yet and is still under strong downward pressure, Founder Securities said in a report.
Lenders led the market down as worries mount that an increase of bad loans may threaten the prospect of the banking sector. The Industrial and Commercial Bank of China Ltd, the nation's largest lender, declined 0.8 percent to 3.74 yuan. Bank of Communications fell 1.6 percent to 4.21 yuan. China Merchants Bank lost 1.7 percent to 9.84 yuan.
Insurers also fell. China Life Insurance, the country's biggest insurer, shed 1.2 percent to 17.83 yuan. Ping An Insurance Co, China's second largest insurer, slid 1.1 percent to 39.43 yuan. China Pacific Insurance (Group) Co declined 1.5 percent to 19.62 yuan.
Property developers lost amid uncertainty over policy direction. Poly Real Estate, the nation's second largest developer, sank 1.8 percent to 9.95 yuan. Gemdale Corporation slumped 2 percent to 5.13 yuan.
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