Chinese shares close lower on tightening concerns
0 Comment(s)
Print
E-mail
Xinhua, August 18, 2011
Chinese shares closed lower on Thursday as investors worried that the government may step up tightening measures to contain high inflation.
The benchmark Shanghai Composite Index was down 1.61 percent, or 41.79 points, to close at 2,559.47.
The Shenzhen Component Index fell 1.59 percent, or 184.12 points, to finish at 11,414.16.
Combined turnover rose to 150 billion yuan (23.46 billion U.S. dollars) from 142.55 billion yuan the previous trading day.
Losers outnumbered gainers 811 to 93 in Shanghai and 1,132 to 176 in Shenzhen.
The market widely expects another interest rate hike in August as the country's consumer price index, a main gauge of inflation, rose to a 37-month high of 6.5 percent in July, analysts said.
The cement sector led the fall, with Ningxia Saima Industry Co. down 4.94 percent and Anhui Conch Cement Co. down 6.19 percent to close at 29.47 yuan and 23.94 yuan, respectively.
Shares of paper makers fell 2.35 percent across the board. Shanghai Luxin Packing Materials Science & Technology Co. tumbled 5.42 percent to finish at 28.43 yuan, while Shandong Huatai Paper Co. dropped 3.33 percent to 5.23 yuan.
The auto sector lost 2.11 percent. Tianrun Crankshaft Co. fell 3.44 percent to close at 14.58 yuan, and Tianjin Motor Dies Co. retreated 4.5 percent to 16.36 yuan.
Steel producers also fell, with Lingyuan Iron and Steel Co. down 4.39 percent to close at 8.49 yuan and Sansteel Minguang Co. losing 3.97 percent to 8.46 yuan.
The central bank has raised the benchmark interest rate three times and the reserve requirement ratio six times this year to rein in stubbornly high inflation.
