SHANGHAI - Chinese share prices ended around seven percent lower on Monday, as investors dumped stocks after Friday's sell-off on Wall Street amid lingering fears over a US recession.
In this file photo, a man eats an ear of corn at a stock exchange in Nanjing, Jiangsu province Jan 22, 2008. Chinese share prices ended around seven percent lower on Jan 28, as investors dumped stocks after Friday's sell-off on Wall Street amid lingering fears over a US recession. [Agencies]
The benchmark Shanghai Composite Index plunged 342.39 points, or 7.19 percent, to 4,419.29. It was its lowest in nearly six months.
Monday's decline in the Shanghai index matched that of January 22, when the Shanghai benchmark fell 7.2 percent before recovering ground later in the week.
Analysts said fears that a US economic slump will hurt demand for Chinese-made products was hurting sentiment. Worries over the potential impact of a prolonged bout of severe winter weather also took a toll.
"There's a lot of uncertainty out there: uncertainty over the U.S. economy, uncertainty over Chinese economy," said Rob Hart, an analyst with Morgan Stanley in Hong Kong.
An investment note to its clients issued by the China Merchants Bank Monday said the stunning 160 billion yuan refinancing plan on the stock market by China's Ping'an Insurance Co last week would continue to dampen investors mood. Ping'an shares, together with China Life, tumbled by 10 per cent on Monday.
The bank called for more caution in buying new holdings during this volatile time of trading.