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Stock market hits 3-year low on falling manufacturing
By Hu Xiaocen |
December 15, 2011, Thursday
|
Online Edition
Online Edition
SHANGHAI'S stock market plunged for the sixth consecutive day on falling manufacturing activities, and slumping non-ferrous metal prices.
The key index lost 2.14 percent to 2,180.89 points at the close of trade today -- a new three-year low. The non-ferrous metals sector fell across the board, registering a 5.53 percent plunge.
The HSBC Flash China Purchasing Manufacturing Index, released today, came in at 49 for December, which indicates a further contraction of manufacturing activities.
Although the index remained below the threshold of 50, it includes a 1.3 percent rebound from 47.7 in November, the lowest in last 32 months.
"Due to weak exports and the gloomy property market, downturn risks put a limit on the future growth of manufacturers," said Qu Hongbin, HSBC's chief economist in China.
"Foreign direct investment in China fell in November, the first decline since 2009. Investment from major Asian countries continued to grow, while FDI growth from the US and Europe is weak," said Shen Danyang, a representative of the Ministry of Commerce at a briefing in Beijing today.
Gold spot prices fell 8 percent in the preceding three days. The strengthening US dollar has driven gold spot prices to US$1,563.38 an ounce, the lowest level since September.
"Gold dropped below its 200-day moving average yesterday for the first time in almost three years, indicating that there are more declines to come," some analysts said, according to Bloomberg.
Copper also declined on China's low PMI, as the country is the world's largest consumer of the metal. Copper for February delivery on the Shanghai Futures Exchange slumped 5.2 percent, with a closing price of 53,460 yuan (US$8,396) a ton.
The key index lost 2.14 percent to 2,180.89 points at the close of trade today -- a new three-year low. The non-ferrous metals sector fell across the board, registering a 5.53 percent plunge.
The HSBC Flash China Purchasing Manufacturing Index, released today, came in at 49 for December, which indicates a further contraction of manufacturing activities.
Although the index remained below the threshold of 50, it includes a 1.3 percent rebound from 47.7 in November, the lowest in last 32 months.
"Due to weak exports and the gloomy property market, downturn risks put a limit on the future growth of manufacturers," said Qu Hongbin, HSBC's chief economist in China.
"Foreign direct investment in China fell in November, the first decline since 2009. Investment from major Asian countries continued to grow, while FDI growth from the US and Europe is weak," said Shen Danyang, a representative of the Ministry of Commerce at a briefing in Beijing today.
Gold spot prices fell 8 percent in the preceding three days. The strengthening US dollar has driven gold spot prices to US$1,563.38 an ounce, the lowest level since September.
"Gold dropped below its 200-day moving average yesterday for the first time in almost three years, indicating that there are more declines to come," some analysts said, according to Bloomberg.
Copper also declined on China's low PMI, as the country is the world's largest consumer of the metal. Copper for February delivery on the Shanghai Futures Exchange slumped 5.2 percent, with a closing price of 53,460 yuan (US$8,396) a ton.
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