Leo Zhang/Shanghai Daily news
Companies forecasting sluggish half-year financial results caused local
shares to dip yesterday.
"Poor earnings prospects made investors trim
positions on those stocks," said Liu Yu, an Orient Securities Co analyst.
The
Shanghai Composite Index, which groups yuan-denominated A shares and
foreign-currency B shares, eased 0.84 percent to 1,037.39.
The A-share Index
dropped 0.83 percent to 1,089.82 and the B-share Index fell 1.17 percent at
60.55.
Shandong Gold Mining Co, one of China's three publicly traded gold
miners, dived the 10 percent daily limit to close at 7.63 yuan (92 US
cents).
The company cut its forecast for first-half net income by about 28
million yuan because of a slowdown in production at two mines.
Yanbian
Shixian Bailu Papermaking Co tumbled 8.16 percent to 3.15 yuan.
The Jilin
Province-based firm said half-year net profit may drop by more than 50 percent
from a year earlier.
Bucking the general downside, carmakers got a lift
yesterday after an industry report said the country's car sales rose in the
first half of this year.
Shanghai Automotive Co edged up 0.43 percent to 4.66
yuan while Guangzhou Oriental Baolong Automotive Industry Co added 0.78 percent
to 3.88 yuan.
Vehicle sales in China grew 9.35 percent from a year earlier to
2.79 million in the first half, said the China Association of Automobile
Manufacturers.