Chinese shares down 1.56 pct on worries about corporate earnings
31/10/2008 17:27
Chinese shares dropped 1.56 percent in morning trade session today after
more listed firms reported weak third-quarter profits.
The benchmark Shanghai
Composite Index closed at 1,765.68 points, down 27.50 points or 1.56 percent
from the previous finish.
The smaller Shenzhen Component Index ended at
5,887.90 points, down 68 points, or 1.15 percent.
Third-quarter profits of
China's 1,466 listed companies fell 10.17 percent from the same period a year
ago to 206.09 billion yuan (US$30.14 billion), down 18.41 percent from the
previous month, according to estimates in China Securities News
today.
Operating net cash flow fell 51.75 percent to 827.4 billion yuan in
the first three quarters. Analysts said rising material costs and weakening
demand led to the slumping profit.
The country's industrial output value
growth slowed to 11.4 percent in September, the lowest since April 2002, the
National Development and Reform Commission said yesterday.
Systematic risks
still existed as the financial crisis began to take a toll on all sectors of
economy. The profitability of China's manufacturing enterprises would continue
to weaken due to excessive production, the Shanghai-based Shenyin Wanguo
Securities said in a report.
Heavyweights led the fall. China Construction
Bank dropped 1.55 percent to 3.80 yuan, and China Merchants Bank fell 4.44
percent to 11.63 yuan. China Life, the country's largest life insurer, closed
3.91 percent down to 18.44 yuan.
PetroChina, Asia's biggest oil producer,
retreated 1.04 percent to 10.51 yuan. Sinopec, the nation's largest oil refiner,
closed at 6.83 yuan, down 3.12 percent.
Gainers outnumbered losers by 668 to
173 in Shanghai and 579 to 133 in Shenzhen.
Xinhua
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