SHANGHAI stocks fell to a seven-week low, following a decline in the US market amid worries about the looming "fiscal cliff" in the world's largest economy.
The key Shanghai Composite Index sank 0.6 percent to 2,043.50 points, the lowest since September 26. Turnover stood at 17.8 billion yuan (US$2.9 billion) by the noon break.
US stocks tumbled yesterday on growing fears about the country's "fiscal cliff." The Dow Jones industrial averages dropped 1.5 percent while the S&P 500 slid 1.4 percent. The Nasdaq composite lost 1.29 percent.
The "fiscal cliff" is a package of tax hikes and spending cuts that will take effect on January 1 if Democrat President Barack Obama and congressional Republicans failed to reach an agreement to resolve it.
"The fall in the peripheral market will have a negative impact on the domestic market which is already weak with a shrinking trading volume," said independent analyst Liang Mingqi.
Coal producers were among the big loses. Qinghai Sunshiny Mining Co dropped 3.3 percent to 4.15 yuan. Shanxi Lu'an Environmental Energy Development Co fell 1.9 percent to 16.82 yuan. China Shenhua Energy Co, the nation's biggest coal producer, slipped 1.2 percent to 22.34 yuan.
Cement producers gained, paring earlier losses, on speculation that new government projects will boost the demand for cement. An industrial report by Bohai Securities said the cement price is on rise at the government launched new infrastructure projects to stabilize economic growth.
Anhui Conch Cement Co, China's biggest cement producer, gained 0.9 percent to 15.82 yuan. Gansu Qilianshan Cement Group Co rose 0.8 percent to 9.57 yuan. Huaxin Cement Co increased 1 percent to 11 yuan.
'Gangnam style' life of young rich in Chongqing
Feedback
RSS
