|
![A shareholder stands inside a securities firm in Shanghai, east China, April 8, 2009. China's benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 2,347.39 points Wednesday, down 3.76 percent from the previous close, while the Shenzhen Component Index plunged 3.63 percent to 8896.97.[Xinhua]](http://images.china.cn/attachement/jpg/site1007/20090409/0011111fa1560b478dca03.jpg "A shareholder stands inside a securities firm in Shanghai, east China, April 8, 2009. China's benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 2,347.39 points Wednesday, down 3.76 percent from the previous close, while the Shenzhen Component Index plunged 3.63 percent to 8896.97.[Xinhua]")
|
|
A shareholder stands inside a securities firm in Shanghai, east China, April 8, 2009. China's benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 2,347.39 points Wednesday, down 3.76 percent from the previous close, while the Shenzhen Component Index plunged 3.63 percent to 8896.97.[Xinhua] |
Chinese equities tumbled 3.76 percent Wednesday as investors took profits and word spread that credit would hit a new high in March, analysts said.
"There is a lot of pressure to sell around the 2,400-point mark," said Yinhe Securities equity strategy analyst Qin Xiaobin.
Chinese equities has gained more than 28.92 percent this year.
Stock prices were also affected because of rumors that credit in March would surge to a new high.
"Investors worry that surging credit could pile on risks for banks' assets," Qin said.
Media reports have said that loans could surge to 1.87 trillion yuan (US$273.8 billion) in March, from more than 1.07 trillion yuan in February and 1.62 trillion yuan in January.
The benchmark Shanghai Composite Index fell 91.79 points to close at 2,347.39. The Shenzhen Component Index plunged 3.63 percent, or 335.29 points, to 8896.97.
Losses outnumbered gains by 797 to 136 in Shanghai and 693 to 99 in Shenzhen.
Combined turnover stood at 208.84 billion yuan, up from 181.6 billion yuan the previous trading day.
Losses were led by banking and securities sectors because of the credit reports.
The three major state-owned listed banks -- Industrial and Commercial Bank of China, Bank of China and China Construction Bank -- all fell more than 3.4 percent.
Changjiang Securities fell 9.45 percent to close at 14.47 yuan, Guoyuan Securities dropped 8.52 percent to 15.99 yuan and Southwest Securities 8.48 percent to 13.17 yuan.
The auto sector fell less than the average as the Chinese Association of Automobile Manufacturers said Wednesday that March auto sales were expected to reach 1.08 million units, up 50,000 over the same period last year.
CAAM secretary general Dong Yang said China's auto market in 2009 would be "cautiously optimistic".
"On one hand, world auto markets still face a severe situation. On the other, it is the first year of China's auto stimulus plan, and the government is expected to issue more policies to stimulate consumption and improve industrial structures," he said.
The CAAM predicted China's overall auto sales would rise 8.7 percent to 10.2 million units in 2009, of which passenger vehicles would rise 10.2 percent to 7.45 million units, and commercial vehicles sales, including trucks and buses, would increase by 5 percent to 2.75 million units.
Shares in Weichai Power ended 3.15 percent down at 30.7 yuan, and those of Chongqing-based Changan Automobile fell 1.22 percent to close at 7.26 yuan, and Wuhan-based Dongfeng Automobile 3.71 percent to 4.15 yuan.
(Xinhua News Agency April 8, 2009)
