Leo Zhang/Shanghai Daily news
Poultry processors led yesterday's declines on Chinese stock markets after
Premier Wen Jiabao said the country has an "arduous" task to control bird
flu.
The Shanghai Composite Index, which tracks both yuan-denominated A
shares and hard-currency B shares, dived 1.79 percent to 1,088.30. The A share
index retreated 1.79 percent to 1,143.92 and the B share index lost 1.63 percent
to 60.56.
The Shenzhen Composite Index, which covers China's smaller stock
exchange, shed 2.34 percent to 264.69.
"The epidemic has dealt a heavy blow
to poultry companies' bottom line," said Lu Chengde, a trader at Guosen
Securities Co. "Investors lightened positions on fears of a wider
outbreak."
Bird flu has yet to be fully controlled in the country and the
danger of its spread remains in some areas, Xinhua news agency reported, citing
Wen as saying during his inspection tour to a county in Liaoning Province in the
northeast of the country.
Shanghai Dajiang (Group) Stock Co, China's largest
publicly traded poultry breeder, plunged 4.80 percent to 2.58 yuan (32 US
cents). Inner Mongolia Prairie Xingfa Co, a chicken breeder, slipped 4.18
percent to 2.98 yuan.
Haikou Agriculture & Industry & Trade
(Luoniushan) Co, a processor of chicken and eggs, lost 3.17 percent at 1.83
yuan.
In other trade, Baoshan Iron & Steel Co, the listed arm of China's
biggest steelmaker, eased 1.79 percent to 3.84 yuan after China Industry News
said the country may take further action to deal with overcapacity at
steelmakers.