China's shares closed down 1.4 percent on Monday as investors cashed out of small caps in a wide range of sectors from retail to manufacturing, amid mounting signs that China's roaring economic growth might soon slow. The Shanghai composite index finished at 1,012.097 points, just shy of an eight-and-a-half-year closing low of 1,011.499 points set on July 11.
"Signs that the economy may slow sparked worries over bottom lines," said Qian Qimin, a senior stock analyst at Shenyin & Wanguo Securities. "With fears of state share reforms still present, the index could test support at 1,000 points soon."
About two dozen stocks dived their 10-percent daily limit.
Retailer Yintai Holding Co Ltd closed at 3.38 yuan, motorcycle maker China Jialing Industrial Co ended at 2.14 yuan and television component producer Shenzhen SEG Co finished at 2.49 yuan.
Beijing is seen easing off on tightening measures amid signs that investment and industrial output are weakening, though the world's seventh-biggest economy is thought to have grown by 9.3 percent in the year through the second quarter, according to the median forecast of 10 economists polled by Reuters.
That is just slightly slower than growth in the first quarter, but economists believe the figures will probably mask a more marked slowdown.
The latest economic data for June and the second quarter will be released on Wednesday morning.
The stock index has dived 20 percent so far this year, extending a 15-percent fall in 2004, partly because Beijing resurrected a scheme in April to convert over $200 billion worth of non-traded state shares in listed firms into freely floated shares.
But blue chips bucked the downtrend on Monday after domestic exchanges unveiled rules allowing around 30 major companies to issue warrants for the first time.
China Southern Airlines Co Ltd was the day's most actively traded stock.
Its mainland shares jumped 5.4 percent to 2.56 yuan, helped also by technical buying after they had fallen sharply over the past week, hit by a forecast for an interim loss.
Comments
Comments are closed.