Stocks News
- Chinese shares tumble 2.6 percent
Date: 18-Dec-2007 Sources: (Xinhua Online)
BEIJING, Dec. 17 (Xinhua) -- Chinese share prices fell sharply Monday continuing last week's decline, with financial and property stocks leading the slump.
Analysts said investors dumped banking and property shares in anticipation of further economic cooling measures being released by the central government.
The government said at the conclusion of the 2007 Central Economic Work Conference on Dec. 5 that it will adopt a 'tight' monetary policy in 2008, a shift from a prudent approach it has followed for the last ten years. Since then, the government has imposed stronger curbs on lending and mortgage loans.
The benchmark Shanghai Composite Index, which covers both A and B shares, plunged 131.15 points, or 2.62 percent, to finish at 4,876.76.
The Shenzhen Component Index on the smaller Shenzhen Stock Exchange fell 364.53 points, or 2.21 percent, to 16,118.97.
The Hushen 300 Index, which accounts for 60 percent of the nation's stock market value, dropped 120.36 points, or 2.42 percent, to 4,857.29.
Gainers led losers by 457 to 310 in Shanghai and 367 to 199 in Shenzhen. The combined turnover of the Shanghai and Shenzhen bourses expanded to 151.56 billion yuan from 122.41 in the previous session.
China's share price slump echoed losses in Hong Hong. The benchmark Hang Seng Index fell 967.06 points, or 3.51 percent, to close at 26,596.58 on concerns that the Federal Reserve will have limited room to cut interest rates after the stronger-than-expected inflation data.
Banks and property developers led the decline. Industrial Bank tumbled 7.67 percent to 46.86 yuan. Heavyweights Industrial and Commercial Bank of China was down 4.01 percent to 7.67 yuan and Bank of China was down 3.24 percent to 6.27 yuan.
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