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Shares lose most in a week on falling FDI, EU debt woes
By Lu Nengneng |
February 16, 2012, Thursday
|
Online Edition
Online Edition
SHANGHAI'S stock index lost the most in more than a week as concerns over decreasing foreign direct investment and the escalating European debt crisis dragged down blue chips.
The Shanghai Composite Index fell 0.42 percent to close at 2,356.86 points, paring part of yesterday's gains. Turnover stood at 83.8 billion yuan (US$ 13.3 billion).
The Ministry of Commerce said today that FDI in China fell for a third month in January at a total of US$9.99 billion – down 0.3 percent from a year earlier. Investment from the European Union, at a total of US$452 million, plunged 42.5 percent from a year earlier as the region battles a sovereign debt crisis.
A bailout program to inject 130 billion euros into debt-ridden Greece was postponed yesterday as European leaders wait for more concrete commitments from Athens on spending cuts and labor reforms designed to pull the country out of its mounting debt.
The possibility of Greece's default and the euro's potential break-up dimmed the region's economic prospects, which is China's biggest trading partner and source of technology imports.
Blue chips led the retreat despite encouragement from the head of China's Securities Regulatory Commission, Guo Shuqing, who said he saw golden investment opportunities in their undervalued price-to-earnings ratio.
Miners, refiners and insurers took the brunt of the decline amid worries over dropping external demand and widening risk exposure.
Jiangxi Copper, China's biggest producer of the metal, shed 10.5 percent to 26.5 yuan. Yanzhou Coal Mining slumped 1.06 percent to 25.3 yuan. Sinopec, Asia's largest refiner, sank 1.04 percent to 7.64 yuan. Ping An Insurance, the second largest insurer in China, sank 1.39 percent to 39.68 yuan. China Pacific Insurance slumped 1.05 percent to 20.78 yuan.
The Shanghai Composite Index fell 0.42 percent to close at 2,356.86 points, paring part of yesterday's gains. Turnover stood at 83.8 billion yuan (US$ 13.3 billion).
The Ministry of Commerce said today that FDI in China fell for a third month in January at a total of US$9.99 billion – down 0.3 percent from a year earlier. Investment from the European Union, at a total of US$452 million, plunged 42.5 percent from a year earlier as the region battles a sovereign debt crisis.
A bailout program to inject 130 billion euros into debt-ridden Greece was postponed yesterday as European leaders wait for more concrete commitments from Athens on spending cuts and labor reforms designed to pull the country out of its mounting debt.
The possibility of Greece's default and the euro's potential break-up dimmed the region's economic prospects, which is China's biggest trading partner and source of technology imports.
Blue chips led the retreat despite encouragement from the head of China's Securities Regulatory Commission, Guo Shuqing, who said he saw golden investment opportunities in their undervalued price-to-earnings ratio.
Miners, refiners and insurers took the brunt of the decline amid worries over dropping external demand and widening risk exposure.
Jiangxi Copper, China's biggest producer of the metal, shed 10.5 percent to 26.5 yuan. Yanzhou Coal Mining slumped 1.06 percent to 25.3 yuan. Sinopec, Asia's largest refiner, sank 1.04 percent to 7.64 yuan. Ping An Insurance, the second largest insurer in China, sank 1.39 percent to 39.68 yuan. China Pacific Insurance slumped 1.05 percent to 20.78 yuan.
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