The benchmark Chinese stock index dropped more than 4 percent
Friday as investors took profits from blue chip shares on concerns
they are over-priced following strong rises over the past months.
The key Shanghai Composite Index fell 4.03 percent to 2,673.21
points. The benchmark index on the Shenzhen Stock Exchange dropped
4.58 percent to close at 7,348.03 points.
China Life Insurance was down 7.2 percent to 35.99 yuan; Baoshan
Iron and Steel declined 6.48 percent to 8.81 yuan and China Unicom
fell 4.12 percent to 4.65 yuan.
Analysts also say investors are concerned that regulators may
soon take protective measures to prevent a stock market bubble from
bursting.
The Shanghai index dropped more than 7 percent this week. During
the first three weeks of the new year, it had risen nearly 10
percent. The benchmark index gained more than 130 percent last
year.
Wang Xingjun, an analyst with the Donghai Securities, said the
declines this week are normal following a long bullish period and
investors should not be too pessimistic.
(Xinhua News Agency February 3, 2007)
