Related News
Shares hit 14 month low on weak economic data
By Lydia Chen |
September 5, 2011, Monday
|
Online Edition
Online Edition
THE Shanghai stock market slumped to its lowest in level nearly 14 months today after a report showed the country's service sector in August grew at its slowest pace on record.
The dark clouds gathering over the US economy, China's biggest trade partner, also bore down on investors as the world's largest economy reported dismal jobs data last Friday, renewing fears it could slip into recession.
The Shanghai Composite Index lost 1.96 percent to 2,478.74, the lowest since July 19 last year when it closed at 2,475.42. Turnover hovered at only 56.4 billion yuan (US$8.83 billion), compared with more than 120 billion yuan when the index was still cruising above 2,700 points in July.
"The shrinking turnover indicated that neither of the two sides of investors, either selling or buying, wants to participate in the market," said Yuan Jun, an analyst with the Oriental Securities.
The market was previous partly supported by people's expectations that inflation may start retreating, causing monetary tightening to ease while fewer new listings may be allowed to lessen liquidity pressure, Yuan said.
"But none of these expectations actually happened, which is why investors' confidence were further dampened," Yuan added.
Meanwhile, China's economy already shows signs of slowdown under the long-standing tightening. A Chinese services-industry index fell to 50.6 in August from 53.5 in July, the lowest since 2005, HSBC Holdings Plc and Markit Economics said in a statement today. A number above 50 indicates expansion.
China meanwhile pledged to continue its monetary tightening and the central bank cautioned that it would be on "high alert" to high inflation in the future, according to Ma Delun, deputy governor of the People's Bank of China.
PetroChina shed 1.74 percent to 9.60 yuan. Yanzhou Coal Mining tumbled 4.53 percent to 28.26 yuan. Anhui Conch Cement Co sank by the daily cap of 10 percent to 19.72 yuan.
The Industrial & Commercial Bank of China was down 0.49 percent to 4.08 yuan. Bank of Communications lost 1.48 percent to 4.66 yuan.
Analysts with China International Capital Corp expected liquidity in the markets would remain tight within the year, the leading Chinese investment bank said in a note today.
The stock markets are likely to suffer more falls in the near future, according to Yuan, who also suggested that it might be better if investors waited until the index touched a bottom of around 2,300 to 2,400 points.
The Shanghai benchmark index has sunk nearly 12.3 percent so far this year. Despite jittery investor sentiment, eight initial public offerings are due to debut this week, putting more pressure on markets that are already struggling with shrinking liquidity.
The dark clouds gathering over the US economy, China's biggest trade partner, also bore down on investors as the world's largest economy reported dismal jobs data last Friday, renewing fears it could slip into recession.
The Shanghai Composite Index lost 1.96 percent to 2,478.74, the lowest since July 19 last year when it closed at 2,475.42. Turnover hovered at only 56.4 billion yuan (US$8.83 billion), compared with more than 120 billion yuan when the index was still cruising above 2,700 points in July.
"The shrinking turnover indicated that neither of the two sides of investors, either selling or buying, wants to participate in the market," said Yuan Jun, an analyst with the Oriental Securities.
The market was previous partly supported by people's expectations that inflation may start retreating, causing monetary tightening to ease while fewer new listings may be allowed to lessen liquidity pressure, Yuan said.
"But none of these expectations actually happened, which is why investors' confidence were further dampened," Yuan added.
Meanwhile, China's economy already shows signs of slowdown under the long-standing tightening. A Chinese services-industry index fell to 50.6 in August from 53.5 in July, the lowest since 2005, HSBC Holdings Plc and Markit Economics said in a statement today. A number above 50 indicates expansion.
China meanwhile pledged to continue its monetary tightening and the central bank cautioned that it would be on "high alert" to high inflation in the future, according to Ma Delun, deputy governor of the People's Bank of China.
PetroChina shed 1.74 percent to 9.60 yuan. Yanzhou Coal Mining tumbled 4.53 percent to 28.26 yuan. Anhui Conch Cement Co sank by the daily cap of 10 percent to 19.72 yuan.
The Industrial & Commercial Bank of China was down 0.49 percent to 4.08 yuan. Bank of Communications lost 1.48 percent to 4.66 yuan.
Analysts with China International Capital Corp expected liquidity in the markets would remain tight within the year, the leading Chinese investment bank said in a note today.
The stock markets are likely to suffer more falls in the near future, according to Yuan, who also suggested that it might be better if investors waited until the index touched a bottom of around 2,300 to 2,400 points.
The Shanghai benchmark index has sunk nearly 12.3 percent so far this year. Despite jittery investor sentiment, eight initial public offerings are due to debut this week, putting more pressure on markets that are already struggling with shrinking liquidity.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
