Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
Credit crisis, rate-hike fears slam China stocks
Adjust font size:

Chinese shares sank on Monday, with almost every stock closing lower, amid concerns over possible interest-rate hikes in China and the effects of the U.S. credit crisis.

The benchmark Shanghai Composite Index tumbled 2.6 percent, or 142.63 points, to 3,820.05. The Shenzhen Component Index closed at 13,207.78, a slump of 609.87 points, or 4.41 percent.

Losses outnumbered gains by 821 to 23 in Shanghai and by 656 to 10 in Shenzhen, and more than 300 stocks fell by the daily limit of 10 percent.

Investor confidence crumbled following losses in other markets, such as a 5.2 percent fall in Hong Kong. There were also fears over the implications of the rescue of investment bank Bear Stearns. Investors were also worried about the possibility of rate hikes in China, following remarks by central bank governor Zhou Xiaochuan.

Analysts said that market confidence was too fragile to be tested by any policy changes. They also said that it was likely a third round of the sub-prime crisis would soon hit markets. This would force Asian markets to tumble and China wouldn't escape unscathed.

Among the top 10 heavyweights, nine shares fell by 2 percent to more than 8 percent -- although PetroChina gained 1.25 percent to 22.61 yuan (about 3 U.S. dollars). The Hushen 300 Index, which tracks the performance of both the Shanghai and Shenzhen stock exchanges, closed at 3,965.28, down 4.63 percent.

Aggregate turnover was 109.5 billion yuan, up from 93 billion yuan on Friday.

(Xinhua News Agency March 17, 2008)

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- China can further tighten monetary policies
- Chinese shares sink on monetary tightening fears
- Premier pledges hefty investment schemes under tight monetary policy
- Tight monetary policy must not be relaxed
- 3 funds approved to counteract falling stock market
- HK stock market weakens to end in negative ground
- Stock market song sold short without a share
- China to establish stock market for growth enterprises
- Stock market not to turn bearish: economist
Most Viewed >>
- Wholesale prices up 9.2% in Feb
- Fed moves may be just 'symbolic'
- Google banks on China market
- China enters critical stage of reform, development
- Jim Rogers: Don't sell Chinese stocks

May 15-17 Shanghai Women's Forum Asia

Dec. 12-13 Beijing China-US Strategic Economic Dialogue

Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?