Chinese shares lower in morning session on worse-than-expected PPI figure
10/12/2008 16:16
Chinese shares finished the morning session 1.16 percent lower today, as
investor confidence was chilled by the worse-than-expected producer price index
(PPI).
The National Bureau of Statistics said the PPI further slowed to an
annual rise of 2 percent in November. Analysts said the below-expectation figure
sparked fears over a worsening economic performance.
The benchmark Shanghai
Composite Index closed the earlier session at 2,214.04 points, down 23.7 points,
and the smaller Shenzhen index lost 93.62 points, or 1.27 percent, to finish at
7,267.37.
The downward trend was led by losses of raw material providers,
such as steel, coal and cement producers.
The banking sector bucked the trend
in the morning, after commercial banks were allowed a day earlier to provide
loans to domestic enterprises conducting acquisition both at home and
abroad.
However, losses largely outnumbered gains on both markets in Shanghai
and Shenzhen.
China Customs is also expected to release November trade
figures today, and some analysts said that China's export may post a decline on
a yearly basis.
On the same day, the three-day Central Economic Work
Conference which gathered the country's top leaders will conclude and more
measures are expected to maintain the stable growth of the economy against the
adverse global economic circumstance.
In the previous trading day, Chinese
shares fell more than 2.5 percent upon profit-taking from gains in the previous
two days, and on worries about possibly unsatisfactory economic
data.
Xinhua
|
