Shares fall 2.8% to 6-month low as data and IPOs spook investors
By Ye Zhen |
June 14, 2013, Friday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday plunged 2.83 percent to a six-month low as investors worried about China's economic growth weakening, growing speculation that new share offerings would restart and a glut of unlocked shares becoming eligible for trading. The Shanghai Composite Index ended at 2,148.36, the lowest close since December 13, after trading resumed following the Dragon Boat Festival.
"Weak economic growth, concerns over the resumption of initial public offerings and the unlocking of massive non-tradable shares are among the main factors that led to the decline," Guosen Securities said yesterday.
Data released over the weekend suggested the world's second largest economy is weakening as reflected in weaker-than-expected consumer prices, lackluster foreign trade, slowing industrial production and tight money supply.
Exports rose just 1 percent in May, down from double-digit growth rates previously while imports dipped 0.3 percent, signalling waning external and domestic demand.
The World Bank has cut its 2013 economic growth forecast for China to 7.7 percent, down from its earlier estimate of 8.4 percent.
Investors also worried that approval for new listings would resume soon after a seven-month lapse following the securities regulator's release of draft rules on Friday. There were also concerns about the oversupply of shares after data showed 3.8 billion non-tradable shares will be unlocked and allowed to circulate this week, up 28.2 percent from a week earlier.
Anhui Conch Cement Co, China's biggest cement producer, fell 6.8 percent to 14.72 yuan (US$2.40). Gansu Qilianshan Cement Group Co slid 6 percent to 9.80 yuan.
Poly Real Estate, China's second-largest listed developer, lost 4.5 percent to 11 yuan. Gemdale Corp lost 5 percent to 6.71 yuan.
CITIC Securities, China's biggest listing broker, slumping 6.4 percent to 11.35 yuan. Haitong Securities shed 5.2 percent to close at 10.96 yuan.
"Weak economic growth, concerns over the resumption of initial public offerings and the unlocking of massive non-tradable shares are among the main factors that led to the decline," Guosen Securities said yesterday.
Data released over the weekend suggested the world's second largest economy is weakening as reflected in weaker-than-expected consumer prices, lackluster foreign trade, slowing industrial production and tight money supply.
Exports rose just 1 percent in May, down from double-digit growth rates previously while imports dipped 0.3 percent, signalling waning external and domestic demand.
The World Bank has cut its 2013 economic growth forecast for China to 7.7 percent, down from its earlier estimate of 8.4 percent.
Investors also worried that approval for new listings would resume soon after a seven-month lapse following the securities regulator's release of draft rules on Friday. There were also concerns about the oversupply of shares after data showed 3.8 billion non-tradable shares will be unlocked and allowed to circulate this week, up 28.2 percent from a week earlier.
Anhui Conch Cement Co, China's biggest cement producer, fell 6.8 percent to 14.72 yuan (US$2.40). Gansu Qilianshan Cement Group Co slid 6 percent to 9.80 yuan.
Poly Real Estate, China's second-largest listed developer, lost 4.5 percent to 11 yuan. Gemdale Corp lost 5 percent to 6.71 yuan.
CITIC Securities, China's biggest listing broker, slumping 6.4 percent to 11.35 yuan. Haitong Securities shed 5.2 percent to close at 10.96 yuan.
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