Squeeze on metals, fears over Europe drive down stocks
By Hu Xiaocen |
January 17, 2012, Tuesday
|
Print Edition
Print Edition
SHANGHAI'S stock market yesterday fell the most in a month on China's curb of nonferrous metals production and last Friday's cut by Standard & Poor's on ratings of nine eurozone countries.
The Shanghai Composite Index tumbled 1.71 percent to 2,206.19 points, capping a four-day, 3.5 percent decline. Turnover stood at 42.9 billion yuan (US$6.8 billion), the lowest level in more than a week.
Li Jun, analyst at Central China Securities, said last week's market rebound is not likely to repeat without support from higher turnover. The market hit a five-week high last Tuesday, before retreating on Wednesday with a 0.42 percent index slip that snapped a three-day gain.
China will curb nonferrous metals production through 2015 to reduce environmental pollution and save energy, said a report on the website of Shanghai Metals Market. Due to shrinking demand, the production of 10 kinds of nonferrous metals will be controlled at 46 million tons, with a yearly growth rate of 8 percent, 6.8 percentage points lower than the average of the last decade.
Nonferrous metal producers tumbled. Kingray New Materials Science and Technology Co plunged 10 percent, closing at 11.53 yuan. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co tumbled 8.63 percent to 41.08 yuan. Xinjiang Joinworld Co slumped 9.93 percent to 13.69 yuan.
France and Austria lost their highest AAA ratings after S&P announced its credit assessment results on 16 eurozone nations. While the ratings of France and Austria were lowered to AA+, Italy, Spain and Portugal saw their ratings lowered by two notches. S&P said the downgrades came mainly because European leaders' recent measures failed to address to the ongoing systematic stresses in the eurozone.
The news dimmed investor confidence in the A-share market as Europe is China's biggest export market. Investors are worried that Europe's debt crisis might further drag down China's economy.
Shipping companies slumped. China Shipping Container Lines lost 3.5 percent to 2.48 yuan. China Cosco Holdings Co, Asia's largest shipping line, fell 2.23 percent to 4.38 yuan.
The Shanghai Composite Index tumbled 1.71 percent to 2,206.19 points, capping a four-day, 3.5 percent decline. Turnover stood at 42.9 billion yuan (US$6.8 billion), the lowest level in more than a week.
Li Jun, analyst at Central China Securities, said last week's market rebound is not likely to repeat without support from higher turnover. The market hit a five-week high last Tuesday, before retreating on Wednesday with a 0.42 percent index slip that snapped a three-day gain.
China will curb nonferrous metals production through 2015 to reduce environmental pollution and save energy, said a report on the website of Shanghai Metals Market. Due to shrinking demand, the production of 10 kinds of nonferrous metals will be controlled at 46 million tons, with a yearly growth rate of 8 percent, 6.8 percentage points lower than the average of the last decade.
Nonferrous metal producers tumbled. Kingray New Materials Science and Technology Co plunged 10 percent, closing at 11.53 yuan. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co tumbled 8.63 percent to 41.08 yuan. Xinjiang Joinworld Co slumped 9.93 percent to 13.69 yuan.
France and Austria lost their highest AAA ratings after S&P announced its credit assessment results on 16 eurozone nations. While the ratings of France and Austria were lowered to AA+, Italy, Spain and Portugal saw their ratings lowered by two notches. S&P said the downgrades came mainly because European leaders' recent measures failed to address to the ongoing systematic stresses in the eurozone.
The news dimmed investor confidence in the A-share market as Europe is China's biggest export market. Investors are worried that Europe's debt crisis might further drag down China's economy.
Shipping companies slumped. China Shipping Container Lines lost 3.5 percent to 2.48 yuan. China Cosco Holdings Co, Asia's largest shipping line, fell 2.23 percent to 4.38 yuan.
- 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.
