China shares close down 5%

Posted by admin on Aug 11th, 2009 and filed under BREAKING NEWS. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

 

BEIJING, July 29 (Xinhua) — Combined turnover shot up to a record high of 429.1 billion yuan (about 63.1 billion U.S. dollars) from 374.27 billion yuan on the previous trading day,Chinese equities ended 5 percent lower Wednesday after rebounding from plummeting more than 7 percent in the afternoon trade, as investors cashed in on earlier gains during the past five trading days. Losers overwhelmingly outnumbered gainers by 49 to 826 in Shanghai and 45 to 711 in Shenzhen.

The real estate sector led the losses, with more than 20 shares down by the daily limit of 10 percent. The Shenzhen-based Gemdale Corporation lost 10 percent to finish at 18.09 yuan, down 2.01 yuan.

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China Vanke, the country’s largest property developer by market value, lost 7.3 percent to end at 13.2 yuan. Poly Real Estate, China’s second largest, plummeted 8.7 percent to 26.56 yuan.

PetroChina, the country’s biggest oil producer, moved down by 5.99 percent to 15.22 yuan, after the Chinese government announced price cuts at the pumps a day earlier.

Other heavyweights on the Shanghai index also fell. China Shenhua, the country’s largest coal producer, retreated 6.48 percent to 36.96 yuan. China Ping An went down 5.33 percent to 59.13 yuan.

Industrial and Commercial Bank of China, the country’s biggest lender, lost 2.64 percent to 5.17 yuan, and China Construction Bank, the country’s largest mortgage lender, edged down 0.49 percent to 6.15 yuan.

Huarong Securities’s Zhang, however, said investor expectation of China’s economic recovery remained unchanged, so it’s possible that the index would bounce back or climb to new highs.

Wednesday’s plunge was “a normal correction as investors rushed to cash in on hefty profits, because the stock market had advanced for five consecutive trading days,” Zhang Yunpeng, an analyst with Beijing-based Huarong Securities told Xinhua.

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