Chinese shares fall 3.52 pct in morning session
6/10/2008 16:18
Chinese shares fall in the morning session today, after big losses on Wall
Street.
The Shanghai Composite Index dropped 80.7 points, or 3.52 percent, to
2,213.08. The Shenzhen Component Index fell 263.62 points, or 3.49 percent, to
7,295.65.
Banking shares fell across the board, with the Industrial and
Commercial Bank of China, the country's largest lender, shedding 3.91 percent to
4.18 yuan. China Merchants Bank fell 6.7 percent to 16.44 yuan and Bank of
Communications lost 5.85 percent to 5.63 yuan.
Brokerage companies saw gains
after news yesterday that China Securities Regulatory Commission would soon
launch the margin trading business for securities firms.
Haitong Securities
rose 6.23 percent to 22.86 yuan, Guojin Securities gained 2.57 percent to 33.17
yuan while Guoyuan Securities was up 2.1 percent to 19.91 yuan.
Margin
trading, which allows traders to borrow part of the money necessary to buy a
security, would change current one-way trading on both the Shanghai and Shenzhen
stock markets and serve as a risk aversion tool for investors.
The move was
good for securities companies, however, a stronger upward momentum of the stock
market depends on the performance of peripheral markets, especially the US
market, said finance professor He Qiang at the Central University of Finance and
Economics.
Steel makers and coal producer shares dropped as investors worried
falling steel and coal prices may erode their earnings, analysts
said.
Baosteel, the country's largest steel maker, plummeted 7.43 percent to
6.73 yuan. The Angang Steel Co, a leading domestic steel maker, was down 8.52
percent to 8.05 yuan. China Shenhua, the country's top coal producer, sank 9.46
percent to 24.8 yuan and Yanzhou Coal Mining Company lost 8.31 percent to 11.81
yuan.
Xinhua
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