Latest News:  
Beijing   Cloudy/Sunny    29 / 16 ℃  City Forecast

Home>>China Business

Overseas gloom casts shadow over local stock markets

By Yu Xi (Global Times)

08:10, June 15, 2012

The Shanghai and Shenzhen stock markets retreated Thursday following a drop in the US markets Wednesday as Spain's credit rating was downgraded, Credit Suisse Group AG lowered its economic growth forecast for China and concerns about the upcoming elections in Greece dampened market confidence.

The Shanghai Composite Index gave up 22.98 points, or 0.99 percent, to close at 2,295.95, while the Shenzhen Component Index declined 0.65 percent, or 64.75 points, to finish at 9,885.29.

Both markets opened lower Thursday following retreats in the US and European markets. In the morning session, the indices gained slightly thanks to the automobile, medical device and insurance sectors, but quickly sank on drops in the coal and cement sectors. In the afternoon session, the Shenzhen Component Index rebounded briefly on solid showings from the agriculture, food and non-ferrous metal sectors, but was finally dragged down by losses to coal, real estate, banking and securities stocks.

"Major risks still come from overseas and that'll raise the risk premium for equities … earnings have yet to hit bottom because a slowdown in economic growth isn't over," according to a report by Bloomberg Thursday, citing Wang Zheng, Shanghai-based chief investment officer at Jingxi Investment Management Co.

The automobile sector got a boost Thursday thanks to a trade-in incentive program announced by the Ministry of Finance and the Ministry of Commerce Wednesday. Specifically, the government will give consumers as much as 18,000 yuan ($2,825.04) in subsidies for each vehicle traded for a new car in 2012. Yangzhou Yaxing Motor Coach Co rose 4.45 percent to 7.74 yuan.

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Joint-actual-troop-deducing completed

  2. Gov't subsidize farmers to reduce air pollution for burning straw

  3. Love in Jiuquan Satellite Launch Center

  4. Seven nutritious foods

Most Popular

Opinions

  1. Master intl rules to solve trade disputes
  2. Investment banks ready to stand on own two feet
  3. China unlikely to undergo local govt debt crisis
  4. Plan to buy Diaoyu Islands a political farce
  5. Beijing Summit features five new aspects
  6. China’s courier industry primed for an overhaul
  7. Why China, US argue over PM2.5 data
  8. People's Daily Commentaries
  9. Nation needs private capital for resource demand
  10. Int'l board could give local stocks a run for money

What's happening in China

Antiques of Qin Dynasty to be exhibited in HK

  1. Power shortages set to ease
  2. Buddhist monk convicted of murder
  3. Coal stocks hit record, easing summer crunch
  4. Left-behind kids have 'dream house'
  5. Childless elderly arrange own funeral services

China Features

  1. Eight systems of Shenzhou-9 manned spacecraft
  2. The thousand-year-old Tibetan paper
  3. Beijing Summit features five new aspects
  4. A visit to Qiang Nationality in S.W. China
  5. 2012 West Lake Lotus Expo kicks off in Hangzhou

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai