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Chinese stock market falls to 2-year low

Chinese stock market falls to 2-year low

China's key stock index slumped to its lowest level in more than two years Monday, as investors reacted to dismal earnings reports and sell-offs in overseas markets.
The benchmark Shanghai Composite Index dropped 4.3 percent, or 78.18 points, by early afternoon to 1,761.58. The Shenzhen Composite Index of China's second, smaller bourse fell 3.8 percent to 486.46.
During morning trading the Shanghai benchmark fell to its lowest intraday level since Oct. 24, 2006, when it dipped as low as 1,756.46.
A slew of disappointing earnings reports have reinforced worries over the economic outlook.
On Monday, Aluminum Corp. of China said rising costs and slowing demand caused its third-quarter net profit to fall 92 percent, to 182.9 million yuan ($26.8 million). The company's shares fell 5.6 percent by midday, to 6.20 yuan.
Pacific Insurance said it posted a net loss of 1.64 billion yuan ($240 million) in the third quarter, compared with a net profit of 1.9 billion yuan ($278 million) in the same period a year earlier. Its shares lost 4.6 percent to 11.80 yuan.
Property shares continued to fall back following gains last week after the government announced a raft of policies aimed at boosting the housing market.
Property developer China Vanke fell 8 percent to 6.01 yuan while Poly Real Estate Group dropped 4.6 percent to 23.65 yuan.
Oil and gas producer PetroChina, the heaviest weighted share in the Shanghai index, slipped 3.5 percent to 10.26 yuan, while refiner Sinopec lost 4.8 percent to 7.53 yuan.
Regulators have sought repeatedly to staunch losses in the country's share markets, which already were in the midst of a major correction when the recent market turmoil hit.
Over the weekend, the Finance Ministry announced it was scrapping a tax on capital gains for individual stock accounts, effective Oct. 9. Earlier, it announced policies aimed at encouraging big state-run companies to buy back shares, among other measures.
But so far these have failed to turn the market around given the gloom prevailing in global markets.
The Shanghai benchmark is now down 71 percent from the all-time peak of 6,124.04 that it hit on Oct. 16, 2007.


Updated : 2021-04-19 04:49 GMT+08:00