China stocks fall on supply, earnings fears
AP - Tuesday, December 30
SHANGHAI, China - Chinese shares drifted lower Monday, with little fresh news to distract investors from worries over a flood of newly tradable shares and bleak corporate earnings prospects.
The benchmark Shanghai Composite Index edged down 0.1 percent, or just 1.04 points, to 1,850.48. The Shenzhen Composite Index of China's second, smaller market fell 0.7 percent to 565.17.
Analysts said there were signs the government was seeking to stabilize the market.
"It's easier said than done, but the authorities are trying to prevent the market from collapsing at the end of the year," said Zhang Linchang, an analyst at Guotai Junan Securities, in Shanghai.
Prices have fallen for six straight sessions amid mounting worries over the release of billions of previously untraded shares into the market as lockup periods expire. Gloomy expectations for corporate earnings due for release in coming weeks have added to the pessimism.
China Petroleum & Chemical Corp., also known as Sinopec, China's biggest oil refiner by volume, gained 0.7 percent to 7.10 yuan as oil prices jumped above $39 a barrel. A widening conflict between Israel and Gaza has raised tensions in the oil-rich Middle East.
PetroChina, the Shanghai benchmark's heaviest weighted share, edged 0.2 percent lower to 10.17 yuan.
Property shares countered the downtrend as regulators eased restrictions on real estate purchases, with China Vanke, the country's biggest developer, up 1.2 percent to 6.61 yuan. Poly Real Estate rose 0.7 percent to 14.89 yuan.
But most heavyweight banks and financial institutions fell.
Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, edged down 0.3 percent to 3.64 yuan. China Merchant Bank Ltd. dropped 0.7 percent to 12.27 yuan and Shanghai Pudong Development Bank shed 1.7 percent to 13.18 yuan.
In currency dealings, the Chinese yuan weakened to 6.8496 to the U.S. dollar from its close last week at 6.8485.
Recommend this article
Average (0 votes)
Sign in to recommend this article »
Most Recommended Stories »
Related Articles: China's Economy
Trials open for 9 over China tainted milk scandalAP - 58 minutes ago
China's SAIC seeking S.Korea support for SsangyongReuters - 2 hours 5 minutes ago
China coal miner talks with power producers failAP - 2 hours 57 minutes ago
Tourism trouble on Thailand's tropical island of PhuketAFP - Tuesday, December 30
Related Articles: Business
Thailand's True Corp revises rights issue ratioReuters - 24 minutes ago
Russia stock regulator loosens trade halt rulesReuters - 29 minutes ago
Rolta India acquires US-based Piocon TechnologiesReuters - 29 minutes ago
Rio wants to meet Guinea govt on iron ore projectReuters - 33 minutes ago
Jai Balaji to start steel plant work by Jan-end -CMDReuters - 36 minutes ago
Related Full Coverage
All Full Coverage
Most Popular – Business
Actress Jennifer Aniston appears naked in GQ magazine
Woolworths to close quarter of stores
Chances of gas cut '50-50', Russia warns Ukraine
At least 210 dead as Israel hammers Hamas-run Gaza
Obama economic plan to cost between 675 and 775 bln: aides
View Complete List »