Related News
Stocks fall to 3-year low on bleak outlook
By Ye Zhen |
July 23, 2012, Monday
|
Online Edition
Online Edition
SHANGHAI'S equity market slumped to the lowest level since March 2009 as worries over the economic outlook intensified after a member of central bank committee gave a pessimistic comment on economy.
The benchmark Shanghai Composite Index plunged 1.26 percent to settle at 2,141.4 points. Turnover was 48 billion yuan (US$7.6 billion) by the trading close.
"China's economic growth is likely to further decelerate to 7.4 percent in the third quarter," Song Guoqing, a member of the monetary policy committee of China's central bank, said over the weekend.
China's economy expanded at 7.6 percent in the second quarter this year, the slowest pace in three years.
Song also warned that short term deflation could happen and the government should be careful about stimulus measures.
Analysts expect the market to decline further amid weak sentiment. "The stock index remains on a downward spiral, and without new policy stimulus, there is no room for it to rebound. The index will continue to test the market's lows until a bullish expectation shows up," Everbright Securities said today.
China Merchants Bank paced a loss for lenders, dropping 3 percent to end at 9.69 yuan, as the company delayed a financing plan to raise 35 billion yuan. The Industrial and Commercial Bank of China Ltd, the nation's largest lender, retreated 1.3 percent to 3.72 yuan. China Construction Bank Corporation lost 1.7 percent to 3.94 yuan.
Insurers also fell. China Life Insurance, the country's biggest insurer, declined 1.8 percent to 19.52 yuan. Ping An Insurance Co, China's second largest insurer, sank 2.6 percent to 44.79 yuan. China Pacific Insurance (Group) Co shed 2.1 percent to 22.81 yuan.
Property developers traded bearish on speculation the government will unveil more curb measures on the property market. China Vanke, the nation's biggest developer, fell 1 percent to 9.21 yuan. Poly Real Estate, the second largest developer, lost 1.3 percent to 11.20 yuan.
The benchmark Shanghai Composite Index plunged 1.26 percent to settle at 2,141.4 points. Turnover was 48 billion yuan (US$7.6 billion) by the trading close.
"China's economic growth is likely to further decelerate to 7.4 percent in the third quarter," Song Guoqing, a member of the monetary policy committee of China's central bank, said over the weekend.
China's economy expanded at 7.6 percent in the second quarter this year, the slowest pace in three years.
Song also warned that short term deflation could happen and the government should be careful about stimulus measures.
Analysts expect the market to decline further amid weak sentiment. "The stock index remains on a downward spiral, and without new policy stimulus, there is no room for it to rebound. The index will continue to test the market's lows until a bullish expectation shows up," Everbright Securities said today.
China Merchants Bank paced a loss for lenders, dropping 3 percent to end at 9.69 yuan, as the company delayed a financing plan to raise 35 billion yuan. The Industrial and Commercial Bank of China Ltd, the nation's largest lender, retreated 1.3 percent to 3.72 yuan. China Construction Bank Corporation lost 1.7 percent to 3.94 yuan.
Insurers also fell. China Life Insurance, the country's biggest insurer, declined 1.8 percent to 19.52 yuan. Ping An Insurance Co, China's second largest insurer, sank 2.6 percent to 44.79 yuan. China Pacific Insurance (Group) Co shed 2.1 percent to 22.81 yuan.
Property developers traded bearish on speculation the government will unveil more curb measures on the property market. China Vanke, the nation's biggest developer, fell 1 percent to 9.21 yuan. Poly Real Estate, the second largest developer, lost 1.3 percent to 11.20 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.
