Latest News:  
Beijing   Overcast/Moderate rain    9 / 12 ℃  City Forecast

English>>China Business

Local stocks weaken as foreign investment declines

By Yu Xi  (Global Times)

08:29, October 22, 2012

Stock markets on the Chinese mainland closed with moderate losses Friday as a drop in foreign direct investment (FDI) in the country during September countered the optimism which emerged Thursday after third quarter GDP growth met market expectations.

The Shanghai Composite Index finished at 2,128.30 points Friday, down 3.39 points, or 0.16 percent; while the Shenzhen Component Index closed last week at 8,796.42 points after falling 1.78 points, or 0.02 percent.

Both markets opened last week on a down note as worries about rising inflationary pressure in the fourth quarter dented trading sentiment Monday. Gains in brewing and real estate shares helped domestic A shares close Tuesday just barely above the break even point. Exchanges in Shanghai and Shenzhen finished with mixed results Wednesday as anxieties about the health of the domestic economy sidelined investors ahead of the release of a slew of macro indicators. As-expected GDP results for the third quarter, combined with statements from Chinese Premier Wen Jiabao that the economy was stabilizing, gave local stocks a lift Thursday.

The Shanghai Composite and the Shenzhen Component opened lower Friday and traded within a narrow range throughout most of the morning session. Contractions in the real estate sector dragged the indices down in afternoon trading. Losses in geothermal energy, and gas stocks weighed heavily on markets later in the day.

The gold sector also numbered among Friday's worst performers as jewelry sales slowed in China. Zhejiang Ming Jewelry Co dived 2.45 percent to 18.32 yuan ($2.93). Lao Feng Xiang Co, a jewelry company, declined 2.15 percent to 20.97 yuan.

Most analysts pinned Friday's lackluster showing at mainland equity markets on weakening FDI data released that day from the Ministry of Commerce. FDI in the country shrank 6.8 percent in September compared with the same month last year, complicating the recovery story which gave the markets a hoist the previous day.

Looking ahead into the coming weeks, the Shanghai Composite will likely continue to hover around the 2,100 point mark, but poor third-quarter corporate earnings may give the index little space to advance, Gui Haoming, chief analyst at Shenyin & Wanguo Securities, said in a report by the China Business News Saturday.

News we recommend:
House prices nudge upward in September Islands dispute benefits carmakers' competitors Sany's bid to usurp Caterpillar
Falsely labeled crabs upset the market A Boon to the Economy 'Right time' for London to build RMB business
Beijing offices still hot properties  The consuming challenge of food safety The dawn of a new growth era

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Weekly review of military photos

  2. Chinese conducts exercise in East China Sea

  3. Music dream in slums

  4. Same-sex wedding performed in Fujian Province

  5. Asia's largest Apple store opens in Beijing

  6. Zhejiang Real Estate Expo kicks off

  7. 14th Shanghai International Arts Festival

  8. Sexy photos of top lingerie model

Most Popular

Opinions

  1. Commentary: Stimulus should be small
  2. Why foreign investors should stay?
  3. Blessed are those who are happy
  4. Experts on touch-and-go landing on the Liaoning
  5. There is no justification for street violence
  6. Tokyo shrine visit angers neighbors
  7. BRICS can build optimism
  8. Rich list shines a light on China’s shifting economy
  9. Indigenous industry key to change
  10. Miners must break ground overseas

What’s happening in China

Foreign schools woo Chinese students

  1. Couple's road-trip romance makes a moving book
  2. Two surrogacy services raided
  3. Beijing prepares to get smart
  4. Chinese telecom fraud gang busted, 86 arrests
  5. Overweight people promote plus-size fashion