Autos and commodities drag down benchmark
SHANGHAI - Stocks on the Chinese mainland fell on Thursday, dragging the benchmark index down from a four-month high.
The retreat came after growth in auto sales and exports slowed and oil prices jumped, spurring concerns the economy is slowing and inflation is quickening.
Jiangxi Copper Co dropped the most in two weeks, as the country posted an unexpected trade deficit in February. FAW Car Co and Jianghuai Automobile Co slid after vehicle sales grew at the slowest pace in more than two years last month. Ping An Insurance (Group) Co retreated as a gauge of banks and insurers fell for the first time in two weeks.
"Inflation is still the biggest concern for the market," said Wang Zheng, chief investment officer at Jingxi Investment Management Co in Shanghai, which manages about $120 million.
The Shanghai Composite Index fell for the first time in a week, losing 1.5 percent to 2957.14 at the 3 pm close, the steepest decline since Feb 22. The CSI 300 Index retreated 1.76 percent to 3280.26.
Jiangxi Copper lost 4.04 percent to 40.33 yuan ($6.13), its biggest decline since Feb 22. Tongling Nonferrous Metals Group Co slid 5.19 percent to 29.59 yuan. Yunnan Copper Industry Co lost 3.52 percent to 26.58 yuan.
FAW Car slid 2.24 percent to 17.90 yuan. Jianghuai Auto lost 3.56 percent to 13.26 yuan. Tianjin FAW Xiali Automobile Co slid 2.47 percent to 8.68 yuan after saying vehicle sales dropped 19 percent from a year earlier in February.
Chinese auto demand may continue to be "adversely affected" as factors such as rising fuel prices drive up ownership costs, Credit Suisse Group AG said.
Ping An dropped 3.33 percent to 51.64 yuan. A gauge of financial companies in the CSI 300 lost 2.2 percent.
Bloomberg News
(China Daily 03/11/2011 page16)
