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China's main stock benchmark falls 2.4 percent, tracking losses on regional bourses

China's main stock benchmark falls 2.4 percent, tracking losses on regional bourses

Chinese stocks fell Monday, tracking losses elsewhere in the region, although the benchmark Shanghai Composite Index regained from earlier losses after falling nearly 5 percent.
The Shanghai Composite Index closed at 5,187.73, down 127.81, or 2.4 percent. Early in the day it fell to as low as 5,032.58 on heavy selling of blue chips.
The Shenzhen Composite Index fell 1.5 percent to 1,280.73.
The tumbles mirrored declines throughout Asia after Friday's slide on Wall Street amid mounting worries over mortgage problems.
But the market was also shaken by unconfirmed rumors that the China Securities Regulatory Commission recently ordered funds to hold off on aggressive buying.
Energy and resource companies led the fall. Aluminum Corporation of China Ltd., also known as Chalco, lost 8.8 percent to 34.34 yuan; China Petroleum & Chemical shed 5.1 percent to 22.18 yuan; and China Shenhua Energy Co. slipped 7.2 percent to 64.51 yuan.
PetroChina Co., which just started trading a week ago, fell 4.5 percent to 36.45 yuan. It is still more than double its initial public offering price of 16.70 yuan, but it is sharply off values hit in its Nov. 5 trading debut.
A central bank decision to boost the level of reserves it requires banks to hold to a record 13.5 percent hurt bank shares.
Industrial & Commercial Bank of China fell 2.2 percent to 8.17 yuan. Bank of China declined 1.8 percent to 7.06 yuan.
Bargain hunting lifted property and steel shares. China Merchants Property Development added 7.2 percent to 93.60 yuan. Baoshan Iron & Steel climbed 2.2 percent to 15.13 yuan.
The Shanghai benchmark fell 8 percent last week, sparking speculation that its protracted rally may have run its course. The index is still up 93 percent since the beginning of the year.
In currency dealings, the Chinese yuan fell against the U.S. dollar late Monday after recent sharp gains, but dealers said the local unit will likely resume rising against the dollar soon as concerns about the U.S. economy contribute to broad dollar weakness.
The dollar was at 7.4115 around 0730 GMT on the over-the-counter market, up from Friday's close of 7.4108.


Updated : 2021-10-17 23:54 GMT+08:00