Shares post largest fall in 10 days as investors turn jittery
By Ye Zhen |
July 9, 2013, Tuesday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday had their biggest fall in 10 days as investors worried about a weak economy, the looming resumption of new offerings and trading in Treasury bond futures that will divert funds from shares.
The Shanghai Composite Index fell 48.93 points, or 2.44 percent, to 1,958.27, the biggest daily decline since June 24 when the barometer plunged 5.3 percent amid China's worst liquidity crunch in a decade.
"Although the liquidity squeeze has been easing, the faltering economic recovery will continue to weight on the market," Zhang Yanbing, analyst with Zheshang Securities, said in a note. "The uncertainty over the reboot of new share offerings and the resumption of trading in Treasury bond futures also dampen investor sentiment."
The market declined amid renewed talk that the securities regulator will resume approvals of initial public offerings as soon as the end of this month.
As of last Thursday, 746 companies were waiting for approval from the China Securities Regulatory Commission to launch IPOs on the Shanghai and Shenzhen bourses, according to data from the CSRC.
Another dampener came from the CSRC's notice after the market closed on Friday that the China Financial Futures Exchange has received the green light to resume trading of Treasury bond futures after an 18-year suspension.
Wintime Energy Co dropped 6.3 percent to 5.54 yuan (90 US cents). China Shenhua Energy Co, the nation's biggest coal producer, shed 3.6 percent to 15.67 yuan. Shaanxi Qinling Cement (Group) Co lost 6.5 percent to 4.06 yuan. Baoshan Iron and Steel Co, China's largest listed steel mill, fell 2 percent to 3.87 yuan. Inner Mongolia Baotou Steel Union Co declined 4.4 percent to 3.87 yuan.
Zijin Mining Group Co, the nation's largest gold producer, lost 4.1 percent to 2.56 yuan.
The Shanghai Composite Index fell 48.93 points, or 2.44 percent, to 1,958.27, the biggest daily decline since June 24 when the barometer plunged 5.3 percent amid China's worst liquidity crunch in a decade.
"Although the liquidity squeeze has been easing, the faltering economic recovery will continue to weight on the market," Zhang Yanbing, analyst with Zheshang Securities, said in a note. "The uncertainty over the reboot of new share offerings and the resumption of trading in Treasury bond futures also dampen investor sentiment."
The market declined amid renewed talk that the securities regulator will resume approvals of initial public offerings as soon as the end of this month.
As of last Thursday, 746 companies were waiting for approval from the China Securities Regulatory Commission to launch IPOs on the Shanghai and Shenzhen bourses, according to data from the CSRC.
Another dampener came from the CSRC's notice after the market closed on Friday that the China Financial Futures Exchange has received the green light to resume trading of Treasury bond futures after an 18-year suspension.
Wintime Energy Co dropped 6.3 percent to 5.54 yuan (90 US cents). China Shenhua Energy Co, the nation's biggest coal producer, shed 3.6 percent to 15.67 yuan. Shaanxi Qinling Cement (Group) Co lost 6.5 percent to 4.06 yuan. Baoshan Iron and Steel Co, China's largest listed steel mill, fell 2 percent to 3.87 yuan. Inner Mongolia Baotou Steel Union Co declined 4.4 percent to 3.87 yuan.
Zijin Mining Group Co, the nation's largest gold producer, lost 4.1 percent to 2.56 yuan.
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