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China shares drop on higher oil prices

China shares drop on higher oil prices

Chinese shares fell again Friday, led by transport companies after oil prices shot up overnight.
The benchmark Shanghai Composite Index dropped 1.09 percent to close at 2,405.23. The Shenzhen Composite Index for China's smaller second market declined by 1.77 percent to close at 676.76.
China South Locomotive & Rolling Stock Corp., the nation's biggest maker of trains, shed 8.6 percent. The country's biggest oil transporter, China Shipping Development Co., fell 3.8 percent.
The declines came after light, sweet crude for October delivery jumped as high as US$122.04 a barrel on the New York Mercantile Exchange on Thursday, before settling at US$121.18, up US$5.62.
Financial stocks were up slightly. Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, rose 0.07 percent. The bank reported Thursday that its first-half net profit jumped 57 percent. Bank of China Ltd. was up 0.03 percent.
Analysts said investors were waiting to see whether the government would announce plans to boost the market after the Beijing Olympics, which end Sunday.
JPMorgan & Co. issued a report this week that Chinese leaders were considering a stimulus plan of up to 400 billion yuan (US$58.4 billion) to stabilize financial markets. But Chinese economists have dismissed the possibility of such action.
Without new government action, markets are expected to fall further.
In currency markets, China's yuan weakened to 6.8249 against the U.S. dollar.


Updated : 2021-06-21 14:00 GMT+08:00