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China stocks fall on supply, earnings fears

China stocks fall on supply, earnings fears

Chinese shares drifted lower Monday, with little fresh news to distract investors from worries over a flood of newly tradable shares and bleak corporate earnings prospects.
The benchmark Shanghai Composite Index edged down 0.1 percent, or just 1.04 points, to 1,850.48. The Shenzhen Composite Index of China's second, smaller market fell 0.7 percent to 565.17.
Analysts said there were signs the government was seeking to stabilize the market.
"It's easier said than done, but the authorities are trying to prevent the market from collapsing at the end of the year," said Zhang Linchang, an analyst at Guotai Junan Securities, in Shanghai.
Prices have fallen for six straight sessions amid mounting worries over the release of billions of previously untraded shares into the market as lockup periods expire. Gloomy expectations for corporate earnings due for release in coming weeks have added to the pessimism.
China Petroleum & Chemical Corp., also known as Sinopec, China's biggest oil refiner by volume, gained 0.7 percent to 7.10 yuan as oil prices jumped above $39 a barrel. A widening conflict between Israel and Gaza has raised tensions in the oil-rich Middle East.
PetroChina, the Shanghai benchmark's heaviest weighted share, edged 0.2 percent lower to 10.17 yuan.
Property shares countered the downtrend as regulators eased restrictions on real estate purchases, with China Vanke, the country's biggest developer, up 1.2 percent to 6.61 yuan. Poly Real Estate rose 0.7 percent to 14.89 yuan.
But most heavyweight banks and financial institutions fell.
Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, edged down 0.3 percent to 3.64 yuan. China Merchant Bank Ltd. dropped 0.7 percent to 12.27 yuan and Shanghai Pudong Development Bank shed 1.7 percent to 13.18 yuan.
In currency dealings, the Chinese yuan weakened to 6.8496 to the U.S. dollar from its close last week at 6.8485.


Updated : 2021-05-12 18:42 GMT+08:00