Business / Markets

Five-week record stock market fall

By Xie Yu (China Daily) Updated: 2014-04-16 07:06

The stock market retreated the most in five weeks on Tuesday, as the nation's money supply grew at the weakest pace in more than a decade in March and triggered more concerns about softening economic momentum.

Financial companies, banks and commodities companies led the drop. The benchmark Shanghai Composite Index fell by 1.4 percent to 2,101.60 points. Turnover reached 91.14 billion yuan ($14.7 billion).

Five-week record stock market fall

The gauge tracing securities companies sank by 2.74 percent. Securities companies gained significantly on Friday after the authorities announced the opening-up of cross-border stock trading between Shanghai and Hong Kong stock exchanges.

CITIC Securities Co Ltd, the nation's biggest brokerage by market value, lost 3.62 percent. Industrial Bank Co Ltd fell more than 3 percent. China Shenhua Energy Co Ltd, a unit of the nation's largest coal producer, slid 2.4 percent, while Sinopec Shanghai Petrochemical Co Ltd lost 1.8 percent.

"The preliminary HSBC China Manufacturing PMI fell to an eight-month low of 48.1 in March, showing manufacturing continues to contract and also confirming the slowing down of economic growth in the first quarter," said Jiang Chao, an economist with Haitong Securities Co Ltd.

Although coal consumption and power generation rebounded slightly in March, based on a low base, it is not going to effectively lift the growth rate for gross domestic product in the first quarter of the year, he added.

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