 Shares fall in light trade
(China Daily)
Updated: 2008-12-31 07:52
 Shanghai stocks fell in light trade yesterday, with China Eastern Airlines sliding despite its announcement of an expanded plan to receive government aid. Steel shares sank after three companies in the sector revealed a plan to merge. The Shanghai Composite Index closed down 0.95 percent at 1832.91 points, posting its seventh straight day of losses. Turnover in Shanghai A shares was small at 37.8 billion yuan against Monday's 37 billion yuan. "The index may head lower, and it may drop faster than expected as the market is vulnerable to worries over poor corporate earnings," said Wu Nan, analyst at Xiangcai Securities. Three steel companies fell sharply after they announced a merger through share swaps that would create the country's largest listed steelmaker. Tangshan Iron & Steel plunged its 10 percent limit to 4.1 yuan, Chengde Xinxin Vanadium & Titanium lost 10 percent to 4.95 yuan, and Handan Iron & Steel dropped 8.78 percent to 3.43 yuan. The shares had been suspended for several months pending the merger announcement, and the overall stock market had fallen sharply in that time. Nevertheless, analysts said the market was not very enthusiastic about the merger. Jiangsu Qionghua Hi-tech tumbled its 5 percent daily limit to 2.96 yuan after saying it was under investigation by the China Securities Regulatory Commission's Jiangsu branch over possible violations of securities laws. The company said it would cooperate actively with the probe. Hebei Jinniu Chemical Industrial sank 4.8 percent to 2.38 yuan after saying the securities regulator was continuing an investigation into the company over the possibility that it had made incorrect statements. Jiangxi Special Electric Motor soared 10 percent to 8.02 yuan after saying one of its expansion projects would receive 9.6 million yuan of investment from the central government. Hang Seng 0.7% lower Hong Kong shares ended 0.7 percent lower yesterday, their last full trading day of 2008. The Hang Seng Index ended 92.98 points lower at 14235.5 points. The index has dropped close to 49 percent so far this year, its biggest yearly drop according to Reuters records which date back to 1983. Turnover edged up to HK$26.3 billion from HK$21.95 billion on Monday. Decliners outnumbered advancing stocks 447 to 299, but 352 scrips remained unchanged. The China Enterprises Index of top locally listed mainland firms slipped 0.2 percent to 7786.19 points, weighed down by banking stocks. Agencies (China Daily 12/31/2008 page15) |
