Chinese shares down 2.1 pct on growth worry, policy uncertainty
11/9/2008 17:41
Chinese stocks slid 2.14 percent before the noon trading break as
investors were gripped with renewed fears over slower economic growth.
The
benchmark Shanghai Composite Index lost 46.06 percent to 2,104.70, the lowest in
21 months. The index edged up 0.23 percent yesterday as investors welcomed the
news the consumer inflation eased to a 14 month low of 4.9 percent in
August.
But the slowing exports growth last month deepened worries over the
economic fundamentals, said analysts.
Investors also feared the government
wouldn't relax the tightening measures in the short term for wary of a rebound
in inflation and before there was a sharp economic slow-down, they
said.
Investor sentiment was extremely low as the key Shanghai index has
plummeted 65.6 percent from its all time high on Oct. 16.
Banks led the
decline as a slow economic growth could reduce loans demand. Shanghai Pudong
Development Bank plunged 5.80 percent to 16.25 yuan. Industrial and Commercial
Bank of China, the nation's largest lender, retreated 2.88 percent to 4.38
yuan.
PetroChina, the most heavy-weighted stock on the Shanghai Composite
Index, slumped 1.99 percent to 10.86 yuan.
Xinhua
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