Nov. 22 -- China's stocks fell, sending the CSI 300 Index to its biggest decline in two weeks. China Merchants Bank Co. and Shanghai Pudong Development Bank Co. led the nation's banks lower on concern the U.S. housing loans crisis could slow China's economy.
``There's concern the U.S. subprime crisis will hit export growth and slow the economy, which would affect banks,'' said Leo Gao, who helps manage the equivalent of $2.3 billion at APS Asset Management Ltd. in Shanghai.
Citic Securities Co., the nation's largest brokerage, declined on concern lower trading volumes will erode income.
The CSI 300 Index, which tracks yuan-denominated A shares traded on the Shanghai and Shenzhen exchanges, fell 96.94, or 1.9 percent, to 4,900.69 at the 11:30 a.m. break in Shanghai, headed for its biggest drop since Nov. 8. The benchmark has slumped 17 percent since reaching a record on Oct. 16.
China Merchants, the country's largest dual-currency credit- card issuer, declined 0.74 yuan, or 1.9 percent, to 37.98. Shanghai Pudong, the Chinese partner of Citigroup Inc., dropped 1.08 yuan, or 2.2 percent, to 48.28.
A measure of financial stocks was the biggest contributor to the index's decline today.
China's export growth may slow next year because of declining demand from the U.S. brought about by the subprime crisis, Xinhua News Agency reported today, citing central bank Governor Zhou Xiaochuan.
Citic Securities slid 3.23 yuan, or 3.5 percent, to 89.97. Haitong Securities Co., the second-largest brokerage in the country, dropped 1.93 yuan, or 3.3 percent, to 56.28. Hong Yuan Securities Co., the No. 3, declined 1.05 yuan, or 2.6 percent, to 39.05.
A total of 6.3 billion shares were traded on the Shanghai and Shenzhen bourses yesterday, about a third of the 18.3 billion daily average this year.
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