Thursday, June 19th, 2008
China’s biggest gas and oil company led the 6.4% drop of the Shanghai Composite Index, losing 5.7%. Chinese stock indexes rose on Wednesday after a nearly two week fall. Apparently investors wanted to make up for losses incurred, and started selling. The selling caused panic and resulted in the 6.4 percent fall. The benchmark Chinese index has had almost 2 weeks of losses, with concerns about oil prices being the main cause.
Chinese stocks have fallen, with the benchmark Shanghai Composite Index dropping 6.4 percent, as profit-taking following a rally the day before prompted a sell-off by jittery investors.
The Shanghai Composite Index’s dip on Thursday came a day after it rose 5.2 percent.
The Shanghai Composite Index’s dip on Thursday came a day after it rose 5.2 percent.
The Shanghai index lost 192.24 points Thursday, falling to 2,748.87.
Market heavyweight PetroChina, the listed unit of China’s biggest oil and gas company, led the decline, falling 5.7 percent to 15.17 yuan.
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Tuesday, June 10th, 2008
Chinese stocks reacted negatively to a Chinese Central Bank’s credit-tightening move. The benchmark Shanghai Composite Index fell 7.7% or 257.34 points. Financial markets in the country were closed yesterday due to a national holiday. The measure by the central bank leaves less funds available for lending and investments. The Chinese economy has been growing at an annual rate of about 10% over the last few years. The government has introduced several measures to prevent the economy from overheating.
Chinese stocks plunged Tuesday following the central bank’s latest credit-tightening move.
The benchmark Shanghai Composite Index dropped 257.34 points, or 7.7 percent to 3,072.33. The Shenzhen Composite Index of China’s second, smaller market lost 8 percent to 928.20.
Chinese financial markets were closed Monday for a national holiday, so Tuesday was the earliest chance for investors to react to a weekend decision by the central bank ordering banks to keep more deposits on hand.
“It’s the second time in a month that the reserve-requirement ratio was raised and this deeply worries investors. The market is too weak to resist any bad news,” said Wei Daoke, an analyst with Shenyin Wanguo Securities in Shanghai.
The move, which leaves less money available for lending and investment, signaled authorities’ intentions to keep credit tight to fight inflation, likely hurting prospects for financial and real estate companies, among others.
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