Stocks slump most in 7 weeks
By Lydia Chen |
July 13, 2011, Wednesday
|
Print Edition
Print Edition
SHANGHAI stocks fell the most in nearly seven weeks yesterday as global fears over the eurozone debt cast its shadow over the local bourse.
The market was also unsettled by China's growing money supply which has created a conundrum for the government as it tries to end its monetary tightening cycle at a time when the country's economy is starting to slow down. The Shanghai Composite Index shed 1.7 percent to 2,754.58. This was the biggest single day fall since May 23.
Heavyweights, such as financials and property developers, led the broad sell-off, while commodities faltered amid worries that a slowing global economy, newly troubled by Europe's debt crisis, would cut demand for metals.
Analysts with Guangzhou Wanlong Securities Consulting Co said financials, especially banks, were the biggest drags on the market due to speculations that their profitability would be hurt by the country's vast government debts.
The government may have to continue monetary tightening as M2, the broader measure of money supply, exceeded forecasts and expanded at 15.9 percent during June. The central bank said Chinese lenders extended 633.9 billion yuan in new credit in June, well above the expected 590 billion yuan.
China's State Council is set to discuss the country's economic growth path for the second half of this year during a regular meeting to be held today.
The Industrial and Commercial Bank of China, the country's largest lender, was down 0.9 percent to 4.29 yuan. China Merchants Bank lost 2 percent to 12.96 yuan.
Under the resources counter Jiangxi Copper decreased almost 3 percent to 34.88 yuan, while Aluminum Corp of China lost 3.8 percent to 10.49 yuan and PetroChina declined 1.5 percent to 10.72 yuan.
China is scheduled to release the last batch of June economic data tomorrow, including GDP figures.
The market was also unsettled by China's growing money supply which has created a conundrum for the government as it tries to end its monetary tightening cycle at a time when the country's economy is starting to slow down. The Shanghai Composite Index shed 1.7 percent to 2,754.58. This was the biggest single day fall since May 23.
Heavyweights, such as financials and property developers, led the broad sell-off, while commodities faltered amid worries that a slowing global economy, newly troubled by Europe's debt crisis, would cut demand for metals.
Analysts with Guangzhou Wanlong Securities Consulting Co said financials, especially banks, were the biggest drags on the market due to speculations that their profitability would be hurt by the country's vast government debts.
The government may have to continue monetary tightening as M2, the broader measure of money supply, exceeded forecasts and expanded at 15.9 percent during June. The central bank said Chinese lenders extended 633.9 billion yuan in new credit in June, well above the expected 590 billion yuan.
China's State Council is set to discuss the country's economic growth path for the second half of this year during a regular meeting to be held today.
The Industrial and Commercial Bank of China, the country's largest lender, was down 0.9 percent to 4.29 yuan. China Merchants Bank lost 2 percent to 12.96 yuan.
Under the resources counter Jiangxi Copper decreased almost 3 percent to 34.88 yuan, while Aluminum Corp of China lost 3.8 percent to 10.49 yuan and PetroChina declined 1.5 percent to 10.72 yuan.
China is scheduled to release the last batch of June economic data tomorrow, including GDP figures.
- 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.
