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Chinese equities slide 2% as economy slows

(Xinhua)
Updated: 2008-12-11 16:34

China shares fell more than 2 percent on Thursday as investors reacted to further unsettling economic data.

Statistics released on Thursday morning showed the consumer price index (CPI) was up just 2.4 percent in November, a seventh straight month of cooling inflationary pressure. Combined with a sharp deceleration in the rise of factory-gate inflation, the figure prompted worries about the fast-slowing economy and rising deflationary pressure.

Moreover, November saw a 2.2-percent decline in China's exports, the first such contraction since June 2001.

In response to the discouraging data, the benchmark Shanghai Composite Index fell 47.44 points, or 2.28 percent, to 2,031.68. The smaller Shenzhen index slid 128.8 points, or 1.72 percent, to 7,361.49.

Combined turnover was 127.783 billion yuan ($18.65 billion), down from 134.045 billion yuan on the previous day. Losses outnumbered gains by 720 to 141 in Shanghai and 613 to 115 in Shenzhen.

Heavyweights led the downward trend.

Sinopec, China's largest oil refiner, fell 3.32 percent to 8.16 yuan.

Three leading commercial banks -- China Construction Bank, the Bank of China and Industrial and Commercial Bank of China -- fell 3.1 percent, 2.69 percent and 2.76 percent, respectively, to 4.37 yuan, 3.25 yuan and 3.97 yuan.

China Life, a major life insurer, was down 2.64 percent to 20.28 yuan.