China shares see biggest fall in 14 months
Sunday, 14 November 2010
SHANGHAI, Nov 13 (AFP): Chinese stocks closed down 5.16 per cent Friday, as investors scrambled to bank profits before the government introduces any new monetary tightening measures, dealers said.
The Shanghai Composite Index, which covers both A and B shares, was down 162.31 points at 2,985.44 on turnover of 298.4 billion yuan (44.9 billion dollars).
It was the biggest single-day fall since the index closed down 6.74 per cent on August 31, 2009.
"Investors are aggressively trimming their positions as they are afraid the government may announce further tightening measures over the weekend," Huatai Securities analyst Zhou Lin told Dow Jones Newswires.
China said last Thursday that consumer prices rose at their fastest pace in more than two years in October, raising expectations of another rate hike as Beijing admits it may miss its 2010 inflation target.
Banks and property developers led the decline amid fears over further tightening moves, traders said.
Industrial and Commercial Bank of China ended down 1.9 per cent to 4.68 yuan. China Merchants Bank shed 5.2 per cent to 13.99.
China Vanke plunged 7.1 per cent to 8.53 yuan. China Merchants Property Development fell 7.7 per cent to 16.74.
The Shanghai Composite Index, which covers both A and B shares, was down 162.31 points at 2,985.44 on turnover of 298.4 billion yuan (44.9 billion dollars).
It was the biggest single-day fall since the index closed down 6.74 per cent on August 31, 2009.
"Investors are aggressively trimming their positions as they are afraid the government may announce further tightening measures over the weekend," Huatai Securities analyst Zhou Lin told Dow Jones Newswires.
China said last Thursday that consumer prices rose at their fastest pace in more than two years in October, raising expectations of another rate hike as Beijing admits it may miss its 2010 inflation target.
Banks and property developers led the decline amid fears over further tightening moves, traders said.
Industrial and Commercial Bank of China ended down 1.9 per cent to 4.68 yuan. China Merchants Bank shed 5.2 per cent to 13.99.
China Vanke plunged 7.1 per cent to 8.53 yuan. China Merchants Property Development fell 7.7 per cent to 16.74.