Chinese shares slump, closing down 3.97 percent

Chinese share prices closed down 3.97 percent on Friday amid fragile sentiment as PetroChina, the biggest index component, fell below its issue price for the first time, dealers said.

Stocks fell to the lowest level in more than one year as investors were pessimistic about the outlook of corporate earnings, while a slump in power companies intensified fears that soaring prices will erode profits.

Shanghai's key stock market tumbled nearly four percent today to near the 3,000 points mark as energy stocks continued to fall while PetroChina declined below its initial offering price.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, dropped 3.97 percent, or 128.07 points, to 3,094.67 at 3pm.

The index lost 398.22 points, or 11.4 percent, this week.

Losers in the Shanghai market outnumbered gainers 786 to 50, while 17 were unchanged.

The Shanghai A-share Index lost 134.24 points or 3.97 percent to 3,247.44 on turnover of 54.3 billion yuan. The Shenzhen A-share Index fell 43.33 points or 4.25 percent to 976.19 on turnover of 23.7 billion yuan.

(Agencies)