Fri, August 01, 2008
Chinese share prices fell 1.57 percent by midday Friday amid fears over a share supply glut, domestic economic uncertainties and volatility in overseas markets, dealers said.
The benchmark Shanghai Composite Index, which covers A and B shares, was down 43.44 points, or 1.57 percent, at 2,732.28.
Shares of more than 100 companies, including Baosteel and several large financial companies, will arrive on the market in August after a lockup period expires, traders said.
"It's certain the market will retain downward bias in the near term," Li Nian of Shenyin Wanguo Securities told Dow Jones Newswires.
"Institutional investors remain cautious about the outlook of China's economy, while retail investors are fretting about an expected sharp increase in stocks this month after lockup periods expire."
However, textile and clothing companies bucked the trend following news that the government raised export tax rebates for certain textile and apparel products to 13 percent from 11 percent from Friday.
The Shanghai A-share index shed 45.74 points, or 1.57 percent, at 2,865.91 points, while the Shenzhen A-share index slid 13.43 points, or 1.55 percent, to 854.49.
(Agencies)
