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Chinese shares close 0.11% higher
(Xinhua)
Updated: 2008-09-09 19:13

BEIJING - A market correction continued in the Chinese stock market on Tuesday as the major index ended 0.11 percent higher and broke a two-year low in mid-session.

The volatility was led by the oil majors. Sinopec had shed 14 percent in the past four trading days, while PetroChina hit a record-low 11.17 yuan.

Related readings:
 Shares down 2.2% in morning trade
 Shares fall at week's end after overnight loss on Wall Street
 Shares fall 3.29% at week's end
 Shares creep higher, driven by rally in metal shares

The falling index in the early session was also affected by leading property developer Vanke after it announced its August sales fell 35.2 percent from a year earlier, stirring up worries of further declines in property prices and sales.

In addition, China Merchants Securities received regulatory approval on Monday to issue 358.55 million A-shares, triggering fears of oversupply.

"The market is so weak that only very strong boosting measures from government could help deter further declines." said an analyst with the Guangzhou-based Wanlong Securities.

China's securities regulator said on Friday it would allow shareholders of listed companies to issue exchangeable bonds to ease share oversupply after the lock-up periods, in effort to boost the market.

Investors, however, soon shrugged off the impact in lingering fear of a slowdown in the economy.

The high consumer price index (CPI) and reduced number of manufacturing orders due to faltering demand from USand European markets cast a shadow on the outlook of the China macro economy.

Vice premier Wang Qishan said on Monday the government was prepared for challenges to sustainable economic growth during the global economic slowdown.

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