Shanghai stocks skid 1.26% on slow growth
By Hu Xiaocen |
July 24, 2012, Tuesday
|
Print Edition
Print Edition
SHANGHAI stocks plunged yesterday on concerns over China's economy after a central bank adviser said economic growth will slow this quarter.
The Shanghai Composite Index tumbled 1.26 percent to 2,141.4 points, the lowest level since March 2009.
Song Guoqing, a member of the People's Bank of China monetary policy committee, told a Beijing forum over the weekend that China's economic growth may cool to 7.4 percent this quarter.
Metal and coal producers were the big losers amid low demand for raw materials as the country's manufacturing activities continue to slacken.
Jiangxi Copper Co, the nation's biggest producer of the metal, plunged 3.2 percent to 21.89 yuan (US$3.43). Aluminum Corp of China Ltd, the listed unit of the nation's biggest maker of the lightweight metal, retreated 1.5 percent to 6.04 yuan. China Shenhua Energy Co, the nation's biggest coal producer, slumped 1.3 percent to 21.96 yuan.
"The tumbling market is causing panic among investors. The key index may fall below 2,000 points. Overcapacity, weak market demand and decelerating inflation are clear signals of a bearish market," Liu Kan, senior analyst at Guoyuan Securities, said yesterday.
Hu Xiaohui, chief analyst at Datong Securities, however, had a different take.
"The market may rebound before the weekend. There's very little chance that the index will break the 2,000-point threshold," Hu said.
The Shanghai Composite Index tumbled 1.26 percent to 2,141.4 points, the lowest level since March 2009.
Song Guoqing, a member of the People's Bank of China monetary policy committee, told a Beijing forum over the weekend that China's economic growth may cool to 7.4 percent this quarter.
Metal and coal producers were the big losers amid low demand for raw materials as the country's manufacturing activities continue to slacken.
Jiangxi Copper Co, the nation's biggest producer of the metal, plunged 3.2 percent to 21.89 yuan (US$3.43). Aluminum Corp of China Ltd, the listed unit of the nation's biggest maker of the lightweight metal, retreated 1.5 percent to 6.04 yuan. China Shenhua Energy Co, the nation's biggest coal producer, slumped 1.3 percent to 21.96 yuan.
"The tumbling market is causing panic among investors. The key index may fall below 2,000 points. Overcapacity, weak market demand and decelerating inflation are clear signals of a bearish market," Liu Kan, senior analyst at Guoyuan Securities, said yesterday.
Hu Xiaohui, chief analyst at Datong Securities, however, had a different take.
"The market may rebound before the weekend. There's very little chance that the index will break the 2,000-point threshold," Hu said.
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