Chinese shares tumble after train crash
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Xinhua, July 25, 2011
Chinese shares tumbled on Monday, the first trading day following a deadly train collision in the eastern province of Zhejiang, which left at least 38 people dead and 192 others injured.
The benchmark Shanghai Composite Index dropped 2.96 percent to close at 2,688.75. The Shenzhen Component Index lost 3.13 percent to finish at 11,966.24.
Aggregated turnover surged to 217.61 billion yuan (about 33.5 billion U.S. dollars) from Friday's 157.8 billion yuan.
Losers outnumbered gainers by 890 to 36 in Shanghai and by 1,240 to 57 in Shenzhen.
The losses on China's markets followed news that a high-speed train rear-ended another Saturday evening.
Stocks related to high-speed trains plummeted, triggering panic selling on the markets. Zhejiang Tianma Bearing Co., Ltd. dropped by the daily limit of 10 percent to 11.12 yuan per share. Zhuzhou Times New Material Technology Co., Ltd. was also down by 10 percent to 18.9 yuan.
PetroChina Company Limited had hit a nine-month low of 10.03 yuan on Monday's trading and closed 2.08 percent lower to 10.36 yuan. Cement shares retreated sharply with Jiangxi Wannianqing Cement Co., Ltd. down 6.53 percent to 18.33 yuan.
Property developers also dropped as the crash may damp demand for real estate in cities along the high-speed railway lines. China Vanke, the country's largest developer by market value, lost 3.33 percent to 8.14 yuan.
Airlines rallied as the train accident may spur demand for alternative transport. China Eastern Airlines Corporation Limited gained 1.19 percent to 5.09 yuan.
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