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Chinese stocks fall 1.6 pct on profit-taking, Wall St. jitters

Chinese stocks fall 1.6 pct on profit-taking, Wall St. jitters

Tracking regional losses on the Wall Street's decline, Chinese stocks were lower Wednesday, with heavy selling in the nonferrous metals sector contributing to the decline.
The benchmark Shanghai Composite Index fell 1.6 percent, or 85.26 percent, to 5,110.52. The index had risen 11.6 percent during the past seven sessions, when it closed at a record high every day.
The Shenzhen Composite Index of China's smaller, second market also slipped Wednesday, losing 1.7 percent to 1,411.60.
The Chinese market was among many in Asia that declined following Wall Street's overnight plunge amid simmering concerns over global credit market turmoil and fears the U.S. Federal Reserve won't do enough to ease a credit crunch.
Many metal firms succumbed to profit-taking after recent strong gains. Western Mining slumped 8.8 percent to 60.97 yuan; Jiangxi Copper dropped 8.3 percent to 41.50 yuan; and Yunnan Copper fell 5.9 percent to 71.50 yuan.
Since the start of last week, Western Mining had risen 19.6 percent, Jiangxi Copper 38.7 percent and Yunnan Copper 42.6 percent, all outperforming the overall market on investor enthusiasm for companies in the resources sector.
Airlines rose Wednesday, with Air China up 6.6 percent at 17.40 yuan, China Southern Airlines 8.2 percent higher at 18.56 yuan, and Shanghai Airlines gaining 6.1 percent to 12.40 yuan.
"There are two positives supporting the airline sector right now - the sustained appreciation of the yuan and rapidly growing transportation demand in China," said Ma Ying, an analyst at Haitong Securities.
In currency dealings the Chinese yuan rose against the U.S. dollar after its official rate was set at a fresh record high rate of 7.5505.
The dollar was at 7.5533 at 0730 GMT on the over-the-counter market, down from Tuesday's close of 7.5565.


Updated : 2021-04-14 08:03 GMT+08:00