China stocks slip 0.5 pct, brokerage shares slide
[2008-12-23 17:03:34]
China stocks slip 0.5 pct, brokerage shares slide
By Claire Zhang
SHANGHAI, Nov 3 (Reuters) - China's main stock index slipped 0.52percent on Monday, led by brokerage shares, as worries about theoutlook for corporate earnings growth and the slowing economyweighed on sentiment.
The benchmark Shanghai Composite Index ended at 1,719.774 points.
Turnover in Shanghai A shares shrank to a fresh seven-week low of23.1 billion yuan ($3.4 billion), down from Friday's already light25.1 billion, reflecting investors' wariness of the weak market.Losing stocks outnumbered gainers by 626 to 278.
The index had fallen 25 percent in October, its biggest one-monthfall since July 1994.
A slowdown in corporate earnings growth continues to weigh onsentiment and many analysts say the market's slide has not yetreached a floor, but the sharp share price declines have broughtdown valuations and suggest that further falls may be more gradual.
'The downtrend has not changed, but after a steep fall like lastmonth's, the index might consolidate or drop at a slower pace assome negative factors have been priced in,' said Wu Nan, analyst atXiang Cai Securities.
Airline shares were weak due to their poor earnings outlook, withChina Eastern Airlines slipping 5.80 percent to 2.76 yuan.
BANK SHARES STRONG
Bank shares were strong after comments by a central bank officialindicating that China had eased restrictions on bank lending.
Industrial & Commercial Bank of China, the country's biggest bank,gained 1.10 percent to 3.66 yuan.
Official media reports over the weekend quoted a central bankspokesman as saying that China was no longer imposing strict limitson bank lending, as it sought to preserve stable and relativelyrapid economic growth during the global financial crisis.
Analysts doubted, however, that the comments could trigger asustained rise in the stock market, especially with banks stillconfronting a weak property market and a slowing economy.
'Turnover is very small. The market needs fresh money coming in togive it a boost,' said Xiang Cai Securities' Wu.
He said an easing of restrictions on lending would do banks littlegood if the number of loan applications falls sharply with theeconomic slowdown.
Property shares were mixed, with China Vanke Co, the country'slargest property developer, rising 0.68 percent to 5.92 yuan.
Haitong Securities fell its 10 percent daily limit to 16.60 yuan. Alock-up of nearly 1.3 billion of its shares will expire inmid-November, local media reported, spurring a sell-off.
'Haitong's huge amount of shares coming out of lock-up spookedinvestors and hit other brokerage shares,' said Zhou Lin, ananalyst at Huatai Securities.
Worries about surging share supplies, including due to the expiryof lock-up periods tied to reforms of state shareholdings andinitial public offerings, periodically weigh on Chinese shares.
($1=6.82 Yuan)
(Editing by Edmund Klamann)
((junjie.zhang@thomsonreuters.com; (8621) 6104-1775; Reuters
Messaging: junjie.zhang.reuters.com@reuters.net)) Hong Kong reportTaiwan report Shanghai indices Shenzhen indices Hong Kong indicesH-share index Red share index SPEED GUIDES RELATED NEWS AND OTHERTOPICS China news All equity news Greater China news Chinesesummary Hong Kong news Chinese hot stocks Taiwan news China IPOsChinese diary Hong Kong IPOs Press digests Keywords: MARKETS CHINASTOCKS CLOSE
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Copyright Thomson Reuters 2008. All rights reserved.
The copying, republication or redistribution of Reuters NewsContent, including by framing or similar means, is expresslyprohibited without the prior written consent of Thomson Reuters.
Neither the Subscriber nor Thomson Financial News warrants thecompleteness or accuracy of the Service or the suitability of theService as a trading aid and neither accepts any liability forlosses howsoever incurred. The content on this site, includingnews, quotes, data and other information, is provided by ThomsonFinancial News and its third party content providers for yourpersonal information only, and neither Thomson Financial News norits third party content providers shall be liable for any errors,inaccuracies or delays in content, or for any actions taken inreliance thereon.
http://www.forbes.com/afxnewslimited/feeds/afx/2008/11/03/afx5637525.html [2008-11-4]
Tag : SlideBy Claire Zhang
SHANGHAI, Nov 3 (Reuters) - China's main stock index slipped 0.52percent on Monday, led by brokerage shares, as worries about theoutlook for corporate earnings growth and the slowing economyweighed on sentiment.
The benchmark Shanghai Composite Index ended at 1,719.774 points.
Turnover in Shanghai A shares shrank to a fresh seven-week low of23.1 billion yuan ($3.4 billion), down from Friday's already light25.1 billion, reflecting investors' wariness of the weak market.Losing stocks outnumbered gainers by 626 to 278.
The index had fallen 25 percent in October, its biggest one-monthfall since July 1994.
A slowdown in corporate earnings growth continues to weigh onsentiment and many analysts say the market's slide has not yetreached a floor, but the sharp share price declines have broughtdown valuations and suggest that further falls may be more gradual.
'The downtrend has not changed, but after a steep fall like lastmonth's, the index might consolidate or drop at a slower pace assome negative factors have been priced in,' said Wu Nan, analyst atXiang Cai Securities.
Airline shares were weak due to their poor earnings outlook, withChina Eastern Airlines slipping 5.80 percent to 2.76 yuan.
BANK SHARES STRONG
Bank shares were strong after comments by a central bank officialindicating that China had eased restrictions on bank lending.
Industrial & Commercial Bank of China, the country's biggest bank,gained 1.10 percent to 3.66 yuan.
Official media reports over the weekend quoted a central bankspokesman as saying that China was no longer imposing strict limitson bank lending, as it sought to preserve stable and relativelyrapid economic growth during the global financial crisis.
Analysts doubted, however, that the comments could trigger asustained rise in the stock market, especially with banks stillconfronting a weak property market and a slowing economy.
'Turnover is very small. The market needs fresh money coming in togive it a boost,' said Xiang Cai Securities' Wu.
He said an easing of restrictions on lending would do banks littlegood if the number of loan applications falls sharply with theeconomic slowdown.
Property shares were mixed, with China Vanke Co, the country'slargest property developer, rising 0.68 percent to 5.92 yuan.
Haitong Securities fell its 10 percent daily limit to 16.60 yuan. Alock-up of nearly 1.3 billion of its shares will expire inmid-November, local media reported, spurring a sell-off.
'Haitong's huge amount of shares coming out of lock-up spookedinvestors and hit other brokerage shares,' said Zhou Lin, ananalyst at Huatai Securities.
Worries about surging share supplies, including due to the expiryof lock-up periods tied to reforms of state shareholdings andinitial public offerings, periodically weigh on Chinese shares.
($1=6.82 Yuan)
(Editing by Edmund Klamann)
((junjie.zhang@thomsonreuters.com; (8621) 6104-1775; Reuters
Messaging: junjie.zhang.reuters.com@reuters.net)) Hong Kong reportTaiwan report Shanghai indices Shenzhen indices Hong Kong indicesH-share index Red share index SPEED GUIDES RELATED NEWS AND OTHERTOPICS China news All equity news Greater China news Chinesesummary Hong Kong news Chinese hot stocks Taiwan news China IPOsChinese diary Hong Kong IPOs Press digests Keywords: MARKETS CHINASTOCKS CLOSE
(Multimedia versions of Reuters Top News are now available for: *3000 Xtra : visit http://topnews.session.rservices.com *BridgeStation: view story .134 * Reuters Plus: from your WebDSSscreen For more information on Top News, visithttp://topnews.reuters.com)
COPYRIGHT
Copyright Thomson Reuters 2008. All rights reserved.
The copying, republication or redistribution of Reuters NewsContent, including by framing or similar means, is expresslyprohibited without the prior written consent of Thomson Reuters.
Neither the Subscriber nor Thomson Financial News warrants thecompleteness or accuracy of the Service or the suitability of theService as a trading aid and neither accepts any liability forlosses howsoever incurred. The content on this site, includingnews, quotes, data and other information, is provided by ThomsonFinancial News and its third party content providers for yourpersonal information only, and neither Thomson Financial News norits third party content providers shall be liable for any errors,inaccuracies or delays in content, or for any actions taken inreliance thereon.
Source: 沱沱网
Keywords:Industrial Supplies
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