Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Markets

News : Markets

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

China Stocks Lower as Weakness Takes Hold

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/22/2013 | 09:26am CEST

SHANGHAI--China's shares ended lower Friday, adding to Thursday's losses, weighed by an extended pullback in financial stocks, while concerns over liquidity conditions also offered investors an excuse to exit the market.

The benchmark Shanghai Composite Index, which tracks both A and B shares, ended down 0.5%, or 11.79 points, at 2314.16. The index lost 4.9% this week, the first week in the Year of Snake, posting the largest weekly drop since the week ended May 27, 2011.

The Shenzhen Composite Index fell 0.2%, or 2.32 points, to 947.69.

Analysts said they expect the market to stay weak in the absence of fresh positive news, tipping an immediate support for the Shanghai index at 2280.

"The market may enter into a consolidation pattern after an abrupt correction, and investors are eyeing potential fresh cues from the upcoming annual meetings of the Chinese legislature," which are due in early March, said Jacky Zhang, an analyst with Capital Securities.

The market may have topped, at least in the short run, given signs of monetary tightening from the central bank, said Southwest Securities analyst Zhang Gang.

The People's Bank of China on Tuesday used a key mechanism aimed at withdrawing liquidity from the banking system for the first time in eight months, in order to ease potential inflationary pressure.

Beijing's recent reiteration of property tightening policies is also aimed to fend off potential inflation risks which could hurt the market in coming months, Zhang Gang added.

Financial stocks continued their pullback Friday after a recent surge, with China Minsheng Banking Corp. off 2.8% at CNY9.50, Ping An Insurance (Group) Co. of China losing 1.7% to CNY45.96, while Citic Securities fell 1.4% to CNY13.71.

Auto makers succumbed to profit-taking after being among the best performers over the past few months.

Anhui Jianghuai Automobile fell 6.7% to CNY7.94, Chongqing Changan Automobile declined 4.5% to CNY8.10, and FAW Car dropped 4.1% to CNY8.30.

The March index futures contract, the most actively traded of the four index futures contracts traded in China, ended 1.0% lower at 2593.2.

The futures are referenced to the CSI-300, an index of 300 Shanghai- and Shenzhen-listed yuan-denominated A shares. The CSI-300 ended down 0.5% at 2596.60.

Write to Amy Li at [email protected]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Stocks mentioned in the article
ChangeLast1st jan.
CHINA-SHANGHAI COMP -1.38% 3075.03 End-of-day quote.-7.21%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
05:56aASIA MARKETS: Asian Markets Give Back Gains, As China Stocks Fall On Tech Concerns
DJ
03:32aASIA MARKETS : Asian Markets Rally Amid Historic Korean Summit
DJ
04/26TSX notches five-week high as financials and technology climb
RE
04/26WALL STREET STOCK EXCHANGE : U.S. Stocks Boosted by Tech Shares
DJ
04/26Wall Street gains on strong earnings, tech resurgence
RE
04/26MARKET SNAPSHOT: Facebook Ignites Tech Sector Rally, Leading Stock Market Higher
DJ
04/26MARKET SNAPSHOT: Facebook Ignites Tech Sector Rally, Leading Stock Market Higher
DJ
04/26Earnings lift global stocks as U.S. yields dip; euro weakens after ECB
RE
04/26Earnings lift stocks as U.S. yields dip; euro weakens after ECB
RE
04/26Earnings lift stocks as U.S. yields dip; euro weakens after ECB
RE
Latest news "Markets"
Advertisement