Markets

China's stocks drop to 2-week low on global slowdown

(Agencies)
Updated: 2010-08-12 16:00

China's stocks fell to the lowest in two weeks and the currency weakened on concern the slowdown in the US and Chinese economies will derail the global recovery.

Jiangxi Copper Co and Aluminum Corp of China Ltd slid at least 2.5 percent on concern about falling demand for metals. China CITIC Bank Corp, the banking unit of China's largest investment firm, declined to the lowest in a month after it announced a rights offer to replenish capital.

Related readings:  Chinese shares rise on economic data release - Aug 11  Chinese shares drop on economic slowdown fears - Aug 10

"There's uncertainty over the global and the domestic recoveries," said Wu Kan, Shanghai-based fund manager at Dazhong Insurance Co, which oversees $285 million. "The correction on the market isn't over yet and the index may drop to a lower level on weaker sentiment."

The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, lost 32.02, or 1.2 percent, to 2,575.48 at the 3 pm close, the lowest since July 27. The CSI 300 Index fell 1.2 percent to 2,816.39.