Money

China's stocks fall for second day - Nov 3

(Xinhua)
Updated: 2010-11-03 15:55

BEIJING - China's stocks fell for a second day on Wednesday, pulled down by non-ferrous metals and coal producers.

The benchmark Shanghai Composite Index was down 0.47 percent, or 14.45 points, to close at 3,030.99.

The Shenzhen Component Index dropped 1.86 percent, or 253.76 points, to finish at 13,392.7.

Combined turnover fell to 415.84 billion yuan ($62.07 billion) from 541.45 billion yuan the previous trading day.

Losers outnumbered gainers 555 to 320 in Shanghai and 823 to 268 in Shenzhen.

Non-ferrous metals fell sharply Wednesday with the whole board down 5.34 percent after reports saying China would cut its export quotas for rare earths by 2 to 3 percent annually and the country plans to set up strategic reserves of 10 minor metals to tighten control of supply.

China Nonferrous Metal Industry's Foreign Engineering and Construction Co fell by the 10 percent daily limit while Jiangxi Copper Co, China's biggest producer of the metal, dropped 6.37 percent to 42.61 yuan.

Coal producers also posted widespread losses Wednesday after Chinese Vice-premier Zhang Dejiang said Tuesday the country would continue to push for mergers and acquisitions within the coal mining industry.

Datong Coal Co, China's third-largest coal miner by capacity, retreated 5 percent to 24.7 yuan while Yanzhou Coal Mining Co, the listed branch of the country's fourth-largest coal producer, slumped 6.95 percent to 29.33 yuan.

In contrast, financial shares rose after the central bank said it would continue the moderately loose monetary policy over the rest of the year.

Industrial and Commercial Bank of China, the country's biggest lender, rose 3.15 percent to 4.58 yuan per share. China Minsheng Bank gained 2.74 percent to 5.62 yuan.