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China stocks slump on lingering eurozone worries

(Xinhua)

08:15, June 26, 2012

BEIJING, June 25 (Xinhua) -- China's stocks extended their declines on Monday, the first trading day after a three-day holiday break, as concerns about the eurozone debt crisis and a domestic economic slowdown have lingered in the minds of investors.

The benchmark Shanghai Composite Index went down 1.63 percent, or 36.76 points, to close at 2,224.11. The Shenzhen Component Index closed at 9,414.21, down 268.47 points, or 2.77 percent.

Aggregated turnover reached 112.98 billion yuan (17.88 billion U.S. dollars), slightly down from 114.4 billion yuan the previous trading day.

Losers outnumbered gainers by 846 to 75 in Shanghai and by 1,306 to 148 in Shenzhen.

Regional Asian markets have dropped on worries about the eurozone crisis, with Hong Kong's benchmark Hang Seng Index down 0.51 percent and Japan's Nikkei Stock Average losing 0.72 percent.

Investors are not expecting much from this week's crucial EU leaders summit, which is scheduled to start Thursday, dealers said.

Market confidence was also dampened by amounting concerns about a sharper-than-expected slowdown in the world's second-largest economy. China's Purchasing Managers' Index (PMI) for the manufacturing sector, released by HSBC last Thursday, slid to a seven-month low of 48.1 in June.

Non-ferrous metal companies, coal companies and brokerages led the fall. Shares of Zhongjin Gold Corp., the nation's leading bullion producer, dived 4.23 percent to 22.18 yuan. Everbright Securities lost 4.36 percent to 12.3 yuan. China Shenhua, the nation's largest coal producer, slipped 3.29 percent to 22.61 yuan.

However, power companies bucked the downward trend, as investors believe falling coal prices and a trial electricity pricing mechanism, which will take effect from July 1, might boost profitability.

Shares of Huadian Power International Corp. climbed 5.68 percent to 4.09 yuan, while Huaneng Power International Inc. gained 2.8 percent to 6.61 yuan.

Email|Print|Comments(Editor:厉振羽、张洪宇)

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